BUZZ-Deutsche Telekom offers good entry point to U.S. exposure, UBS ups to 'buy'

UBS ups Deutsche Telekom DTEGn.DE (DT) to "buy" from "neutral", citing a good entry point after recent pull-back in shares price on cautious Q4 comments and profit-taking

Since the beginning of December, shares in DT and its subsidiary T-Mobile US TMUS.O have fallen about 3% and 13% respectively

DT provides a good entry point into a US-exposed name offering defensive 11% annual EPS growth that is relatively less impacted by price competition in European market, UBS says

The broker sees upside risk among others in further dollar strength, reassurance on the U.S. unit 2025 outlook and further buybacks at the DT level

Despite increasing competition in the German mobile sector, the bulk of DT's German revenues are fixed-line and investors may be more focused on the upside from U.S. domestic exposure post the outcome of the presidential elections, UBS says

Out of 23 analysts that cover Deutsche Telekom, 21 rate the stock "strong buy"/"buy", while two rate it "hold" - LSEG data

(Reporting by Amir Orusov)

((Amir.orusov@thomsonreuters.com))