Deutsche Telekom "equal weight," target price reduced

19.01.06 - Morgan Stanley

LONDON, January 19 (newratings.com) - Analysts at Morgan Stanley maintain their "equal weight" rating on Deutsche Telekom (DTEL-EUR). The target price has been reduced from ?17.80 to ?15.00.

In a research note published this morning, the analysts mention that the downward revision in the target price is to reflect the ongoing slowdown in the US telecom industry. Deutsche Telekom is witnessing declining subscriber growth and shrinking ARPUs in the US, the analysts say. The company's CAPEX in Germany in the long term is likely to be higher than the earlier estimates, Morgan Stanley adds.