Buyback Momentum and Defensive Appeal Give Deutsche Telekom a Floor as Tech Sell-Off Spills Over
Published on 07/20/2026 at 13:52 | Redaktion boerse-global.de
Deutsche Telekom shares are clinging to the 27-euro mark, a level that chart watchers have flagged as make-or-break for any near-term recovery, while a torrent of share repurchases and a chorus of bullish analyst ratings provide a counterweight to the broader technology rout. The stock recently changed hands at 27.06 euros, less than 1% below its 50-day moving average of 27.29 euros, after slipping from a February high of 34.35 euros. The gap to that 52-week peak still stands at roughly 21%, but the combination of a heavy buyback calendar and a defensive business profile is drawing investors who are wary of the volatility sweeping through AI-adjacent names.
The company is executing the third tranche of its 2026 buyback programme with unusual intensity. Between July 1 and July 10 alone, Deutsche Telekom repurchased 2.32 million of its own shares, including 1.41 million in the week ending July 10. The current tranche authorises up to 560 million euros in buybacks through September 30, and the full-year target stands at 2 billion euros. Fewer shares in circulation mechanically lift earnings per share, a tailwind that becomes more meaningful when combined with the recently increased dividend of 1.00 euro per share.
Analysts see further upside despite a year-to-date decline of 2.81%. JPMorgan reiterated its "Overweight" rating with a 40-euro price target, while Barclays and UBS keep targets in the 36.50- to 36.60-euro range. The rationale rests on the group's stable cash flows—bolstered by T-Mobile US's strong market position—and the operational momentum visible in first-quarter 2026 results. The partnership with OpenAI has also bolstered confidence, even as questions swirl around the profitability of the massive data-centre investments that Moody's estimates will reach at least $3 trillion globally over the next five years. In that environment, Deutsche Telekom's defensive revenue base makes it a relative haven within the DAX, particularly after the Chinese language model Kimi K3 triggered a fresh wave of selling in chip and AI stocks on July 20, reminiscent of the DeepSeek shock 18 months ago.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
Technically, the stock is showing tentative signs of life. The relative strength index sits at 55.7, a neutral reading that leaves room for further gains. Friday's close at 27.01 euros marked a 1.09% advance and a decisive break above the 38-day moving average. The next hurdle is the 50-day average at 27.30 euros; reclaiming that level would reinforce the recovery narrative. At the other end of the spectrum, the 52-week low of 23.54 euros, set in late June, underscores how far the shares have already bounced—a recovery of nearly 15% from that trough.
Investors now have a clear date on the calendar: August 6, when Deutsche Telekom releases its next quarterly figures. The print will test whether the operational strength that underpinned the first quarter can be sustained and whether the stock can justify the ambitious price targets that the sell side continues to defend. Until then, the 27-euro zone remains the pivot—a level where buyback-driven demand, defensive rotation, and chart support converge.
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