First Berlin Equity Research Recommends Buying Telefónica Deutschland Stock

First Berlin Equity Research GmbH has initiated coverage on Telefónica Deutschland Holding AG with a "Buy" recommendation, setting a target price of €3.00 per share. Despite the recent contract loss with 1&1, analysts consider this as a temporary hindrance. They anticipate recovery driven by a stabilizing German telecom market, enhanced capital productivity, and diminishing effects of past regulation.

The research adopts a dual evaluation method, employing both DCF valuation and peer group comparison for 2026. This comprehensive analysis led to the estimated 44% potential upside for the stock. Analyst Kevin Sheil emphasized that the projected impacts of the 1&1 contract loss will be counterbalanced over time, aligning with the expected market changes.