Deutsche Telekom AG ADR DTEGY

There were no surprises in no-moat Deutsche Telekom's 2020 results as the company had already upgraded its guidance in December 2020 backed by strong performance in the U.S., where EBITDAaL grew organically by 10.8% for the year, as the company added 5.5 million customers in mobile while keeping low levels of churn and higher average revenue per user derived from the merger with Sprint. The company claims it has already realized EUR 1.3 billion in synergies in 2020 (EUR 600 million for network synergies and EUR 700 million from sales, general, and administrative costs) and expects a run-rate of EUR 3 billion for 2021. (For more information on the U.S. business, please check T-Mobile’s note from Feb. 5, 2021.) We are maintaining our fair value estimate of EUR 16 per share.