Deutsche Telekom downgraded to "hold"

23.01.06 - ING Financial Markets

LONDON, January 23 (newratings.com) - Analyst Damien Chew of ING Financial Markets downgrades Deutsche Telekom (DTEL-EUR) from "buy" to "hold." The 12-month target price has been reduced from ?17.30 to ?14.80.

In a research note published this morning, the analyst mentions that there are high execution risks to the company's plans to invest in future growth, given the intensifying competitive pressures. There are also uncertainties surrounding Deutsche Telekom's 3G and CAPEX plans in the US, the analyst says. The company is likely to have been losing market share to smaller rivals in Europe, ING Financial Markets adds.