Deutsche Telekom Earnings: Outperforming Competitors in US and Germany; Maintaining Fair Value

Narrow-moat Deutsche Telekom's first-quarter results were on track with organic adjusted EBITDA after leases growth of 5.8%, in line with guidance of 6%. The main driver of group EBITDAaL growth was T-Mobile US with 7.3% organic growth, which was followed by a more moderate 3.3% growth, excluding US Deutsche Telekom, which is outperforming its peers in the US and Germany and making slow, but steady market share gains. We maintain our EUR 25 fair value estimate, with shares undervalued by 15% and trading close to EUR 22.