Deutsche Telekom "add"

24.04.06 - Dresdner Kleinwort Wasser.

LONDON, April 24 (newratings.com) - Analysts at Dresdner Kleinwort Wasserstein maintain their "add" rating on Deutsche Telekom AG (DTEL-EUR). The target price is set to ?17.

In a research note published this morning, the analysts mention that Blackstone has acquired a 4.5% stake in Deutsche Telekom from KFW for ?2.7 billion or ?14 per share. The analysts expect Blackstone to hold on to its stake in Deutsche Telekom for a minimum of two years. The company would offer a 7% dividend yield in 2007 and generate 10.6% free cash flows, the analysts believe.