Deutsche Telekom Keeps Delivering on Both Sides of Atlantic; Maintaining FVE

No-moat Deutsche Telekom reported strong first-quarter results and slightly raised its 2021 guidance for the European business, where it now expects EBITDA (after leases) of around EUR 14.4 billion, compared with EUR 14.3 billion before, and free cash flow of around EUR 3.6 billion, compared with EUR 3.5 billion before. In the United States, T-Mobile keeps delivering and already announced last week $0.1 billion in additional synergies from the Sprint deal, bringing total synergies to $2.8 billion-$3.1 billion in 2021. We are maintaining our fair value estimates of EUR 17 per share and $20 per ADR.