'Most benign market', Citi analyses German telecoms market

Telefonica Deutschland Holding AG

02/03/2022 10:48

** Citi sees the German telecommunications market as "the most
benign of the biggest markets in Europe", considering it
rational and growing, rating all but one company a "buy"
    ** Deutsche Telekom  DTEGn.DE  is Citi's top pick, citing
the German firm's "robust customer and revenue growth in fixed
and mobile, rising broadband wholesale prices (from April 2022)
and cost control"
    ** Citi keeps its buy ratings on Vodafone  VODI.DE  mainly
on exposure to consolidation rather than its German business
    ** The broker also rates Telefonica  O2Dn.DE  and Freenet
 FNTGn.DE  a "buy", citing the former's capitalisation on its
network quality and posting of net adds, and the latter's
undervaluation
    ** The note rates 1&1  1U1.DE  "neutral", as "material
execution risk related to its network build using a new
technology and to customer migration/satisfaction remain for the
foreseeable future"

 (Reporting by Tristan Chabba; editing by David Evans)
 ((tristan.chabba@thomsonreuters.com))