Global Markets

These Two German Stocks Offer High Upside Potential

Story Highlights

Analysts are highly bullish on these two German stocks and see high upside.

Deutsche Telekom (DE:DTE) and Infineon Technologies AG (DE:IFX) have Buy ratings from analysts and upside potential of around 25% on their share prices. The past performance of these stocks has been impressive, but due to their strong business performance, the analysts are confident in another raise.

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On TipRanks, tools like Trending Stocks and Stock Comparison are very helpful in these situations. Using these tools, we can pick stocks from a particular market that are on the radar of analysts. Later on, we can compare the stocks based on different parameters.

Let’s have a look at some details.

Deutsche Telekom AG

Deutsche Telekom provides telecommunications services for fixed and mobile networks. The company also operates in information technology services like data centers, cloud ecosystems, etc.

Despite good growth of around 30% in the stock in the last year, analysts are bullish on the stock for 2023. The last reported results for the third quarter boosted investor and analyst confidence in the company.

The company posted a jump of 80% in its quarterly net profits of €2.4 billion. The company’s customer base grew, and it also introduced a higher rate plan, which increased revenues and profits. The net revenue increased by 8.8% to €29 billion.

Yesterday, Deutsche Bank Analyst Robert Grindle reiterated his Buy rating on the stock at a target price of €29.5. This shows a huge growth of 45% on the current trading level of €20.3.

Grindle has a strong grip on European telecom stocks, with a 100% success rate on the Deutsche Telekom stock. His average return on the stock is 14.12% per rating. Grindle describes the stock as the “Best European telecom stock,” based on its stable business model, higher dividends, and growth in the U.S. market.

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Is Deutsche Telekom a Good Buy?

According to TipRanks’ analyst consensus, Deutsche Telekom stock has a Strong Buy rating, with 12 Buy recommendations.

The DTE average target price is €25.5, which represents a 26% change from the current price level.

Infineon Technologies AG

Infineon Technologies is a manufacturing company in the semiconductor space. The company operated through four segments: Automotive, Industrial Power Control, Power & Sensor Systems, and Connected Secure Systems.

After dropping 14.2% in the previous year, the stock has gained 30% in the last three months. The analysts feel the company’s strong financials are driving the stock price higher in the market. For 2023, the company is eyeing a revenue goal of €15.5 billion, up from €14.2 billion in 2022.

Recently, analysts from UBS and Bernstein, among others, have reiterated their Buy ratings on the stock. Francois Xavier Bouvignies from UBS has a target price of €44, which has an upside of almost 36%. He expects a good start for Infineon in 2023, based on its orders and pricing, which are currently the focus in the technology sector in Europe.

Analyst Adithya Metuku from Credit Suisse has the highest target price of €47.0 on the stock, which represents a growth of 46.5%. Metuka is a four-star rated analyst on TipRanks and believes the company’s outlook for 2023 is “conservative.”

Infineon Stock Forecast

The average stock forecast for IFX is €40.56, which has an upside potential of 25.3%. The target price has a high forecast of €47.44 and a low forecast of €20.02.

On TipRanks, Infineon stock has a Moderate Buy rating with a total of 18 recommendations.

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Ending Notes

Both companies have reported good financial results, and the outlook also remains positive. Given the analysts’ views on these sectors, their Buy ratings make these two a good addition to an investor’s portfolio.


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