First Berlin Reaffirms Buy Rating for Telefónica Deutschland

First Berlin Equity Research has reiterated its recommendation for Telefónica Deutschland Holding AG, maintaining a target price of €3.00 per share, despite recent challenges from losing the 1&1 contract. The loss is viewed as a temporary setback, with expectations for recovery backed by a stabilizing German telecom market and improved industry capital productivity.

Analyst Kevin Sheil projects that the negative impact should be alleviated by 2026, following strategic market developments. A dual valuation approach, encompassing DCF valuation and peer group comparison, supports the target price, suggesting a potential 43% upside for investors.

First Berlin's coverage commences with a Buy rating, reflecting confidence in the long-term prospects of Telefónica Deutschland amid ongoing industry changes.