DAX-40 listed companies Deutsche Telekom (DE:DTE) and Infineon Technologies AG (DE:IFX) reported their quarterly earnings for 2023 in May with better-than-expected numbers. Analysts have expressed a favorable outlook on these stocks, rating them as Strong Buy. DTE is projected to have a potential upside of approximately 19%, whereas Infineon demonstrates the potential for over 30% growth in its share price.
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Let’s dig deeper into the numbers.
Deutsche Telekom AG
Deutsche Telekom is a prominent telecommunications company in Europe that offers an extensive range of products and services, including fixed-line, mobile, internet, and IPTV solutions.
The company reported its Q1 2023 earnings on May 11. The company’s earnings of €0.39 per share surpassed the estimate of €0.37 per share by analysts. The company reported adjusted earnings of €9.96 billion, surpassing the consensus estimate of €9.9 billion by a slight margin.
The telecommunications operator experienced a 0.5% increase in quarterly revenue, reaching €27.82 billion, as compared to last year. The positive numbers were driven by higher growth in Germany and improved performance from T-Mobile in the U.S. The company has also revised its 2023 guidance, raising its expectations for full-year adjusted EBITDA to €40.9 billion compared to the previous forecast of €40.8 billion.
Post-results, a few analysts have re-confirmed their Buy ratings on the stock. Seven days ago, analyst Andrew Lee from Goldman Sachs reiterated his Buy rating, suggesting growth of 25.7% in the share price.
Deutsche Telekom Stock Forecast
According to TipRanks, DTE stock has a Strong Buy rating with a total of 12 recommendations, of which 11 are Buy.
The average target price is €26.01, which represents a 19% change from the current price level.
Infineon Technologies AG
Infineon Technologies is a semiconductor manufacturing company catering to various sectors like automotive, industrial, telecom, security, etc.
The company released its second-quarter results for 2023 on May 4. The company delivered a quarter that exceeded expectations and also revised its outlook upward for the current fiscal year. The company posted a 25% growth in its revenues of €4.12 billion in Q2, as compared to the same quarter last year. During the quarter, the profit for the period showed improvement, rising to €826 million compared to €728 million in the previous quarter.
Infineon has also revised its revenue forecast for the full year to €16.2 billion, which was initially set at €15.5 billion.
The stock has received a lot of support from analysts since the results announcement. Today, UBS analyst Francois Xavier Bouvignies reiterated the buy rating on the stock with a prediction of a 36% upside in the share price.
Is Infineon Stock a Good Buy?
On TipRanks, IFX stock has a Strong Buy rating backed by 12 Buy, one Hold, and one Sell recommendations.
The average stock forecast is €47.51, which has an upside potential of 32.4%. The target price has a high forecast of €55 and a low forecast of €28.
Conclusion
DTE and IFX have demonstrated strong performances in their recent results and have expressed a positive outlook for the remainder of 2023. Moreover, analysts maintain a bullish perspective on their stocks, anticipating higher levels of growth.
