German telecom stocks remain attractively valued, according to Kepler Cheuvreux, which reiterated neutral ratings on the sector’s largest players despite a lack of immediate catalysts.
The research firm highlighted Deutsche Telekom and Freenet as preferred picks, emphasizing their focus on self-help earnings growth and non-telecom revenue streams. Valuations were described as undemanding, with capital returns offering potential upside for investors adopting a 12-month-plus horizon.
Deutsche Telekom’s acquisition of Fiberhost and Inea from Macquarie Asset Management for roughly €1 billion is expected to bolster T-Mobile Polska’s fixed broadband presence in Poland. The deal underscores the group’s strategy to expand beyond core mobile operations.
Freenet, meanwhile, confirmed its full-year 2026 outlook following a robust first half, driven by revenue growth from the acquisition of Mobilezone. The company anticipates stronger earnings in the second half of the year, aligning with its medium-term growth trajectory.
Kepler Cheuvreux noted that while near-term catalysts are scarce in the second half of 2026, the investment case for German telecom stocks could strengthen as 2027 approaches, contingent on execution and market conditions.
