Possible new demonstration in the offing as new year arrives
Deutsche Telekom: A Year to Watch for Stock Investors
After a long period of underperformance, Deutsche Telekom is making waves in the financial market. Here's why 2025 could be another successful year for this telecommunications giant.
Last year, Deutsche Telekom rocketed into the upper echelons of the DAX, gaining over 30% and outperforming heavyweights like Rheinmetall, Commerzbank, Deutsche Bank, and even SAP and Siemens in terms of pure performance (excluding dividends). The stock's meteoric rise continued over the past five years, solidifying its position as a top performer.
Goldman Sachs has issued high price targets of almost 40 euros for the paper, suggesting there's still room for growth. Two key announcements slated for 2025 could help keep this momentum going:
Deutsche Telekom: A Globe-Trotting Titan?
A recent study by EY has not only placed Deutsche Telekom among the 100 most valuable listed companies globally but also among the select few from Germany. This esteemed recognition puts the telecom giant on par with tech titans like Apple and fellow DAX members SAP and Siemens.
Deutsche Telekom Puts its Money Where its Mouth Is
Deutsche Telekom has also announced a share buyback program, earmarking up to 550 million euros to buy back its own shares between January 3rd and April 4th, 2025. This follows an earlier commitment to buy back shares worth up to 2 billion euros for the entire year 2025. A significant portion of the shares will be withdrawn, while a small part will be used to settle remuneration programs.
While share buybacks can be contentious, they can also signal a positive outlook on the company's future prospects. By buying back its own shares, Deutsche Telekom demonstrates its faith in its stock and engenders a sense of security among investors, potentially boosting long-term stock performance.
So, should investors strike while the iron is hot? With the stock already performing exceptionally well and the company making strategic moves, it seems like a safe bet that shareholders could reap the rewards in 2025.
Contains material from dpa-AFX
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- Conflict of Interest Statement The majority shareholder of Börsenmedien AG, Mr. Bernd Förtsch, has direct and indirect positions in the financial instruments mentioned in the publication or related derivatives, which could benefit from the resulting price development.
Deutsche Telekom's strong performance in the financial market, as seen by its impressive gains and recognition among global and domestic leaders, suggests continued growth in financing aspects. The announcement of a share buyback program further reinforces this positive outlook, indicating the company's faith in its own stock and potential boost to long-term investor gains.
