The German companies Deutsche Telekom (DE:DTE) and Infineon Technologies (DE:IFX) have Strong Buy ratings from analysts on TipRanks. After starting the year on a positive note in terms of their share prices, analysts predict further upside potential.
These stocks are also part of the TipRanks Trending Stocks tool for the German market. This implies that these stocks have been rated/re-rated by analysts over the period of the last 30 days.
The Trending Stocks tool is an easier way to pick shares that are on the radar of investors and could be suitable options depending on the timing.
Let’s have a look at these companies in detail.
Deutsche Telekom
Being the leading telecom player in Europe, Deutsche Telekom enjoys a dominant position in a mature industry. This provides an advantage in pricing power, leading to stable revenues for the company.
The last year has been great for DTE shareholders, with a gain of 33% in the share price. The 2022 earnings were also in sync and reflected a great performance exceeding its guidance numbers. The full-year revenues were up 6.1% to €114.4 billion, as compared to the previous year. The company reported an impressive growth of 30% in its free cash flow (FCF) of €11.5 billion.
Analysts are confident about the stock based on the strong cash flow, EPS, and dividend growth according to the company’s guidance for 2023. The adjusted EBITDA is forecasted to be up 4% to €40.8 billion. The FCF is expected to increase by 40% to €16 billion.
Deutsche Telekom Stock Forecast
Post such favorable guidance numbers, many analysts have reiterated their ratings on the stock.
According to TipRanks’ rating consensus, DTE stock has a Strong Buy rating.
The average price forecast is €25.72, which shows a change of 17.4% from the current price.
Infineon Technologies AG
Infineon Technologies is a manufacturing company in the semiconductor space that provides a wide range of products and solutions to the automotive, industrial, telecom, and other sectors.
In February, the company reported its first-quarter earnings for the fiscal year 2023, indicating a positive start to the year. Despite posting a slight decline in its revenues, the company was able to pull off higher gross margins of 47.2%, up from 44.4% in the previous quarter. The company also raised its outlook for the full year 2023, with revenue of €15.5 billion.
Analysts hold a bullish view of the company’s future earnings, driven by higher orders and improved pricing.
Infineon Share Price Forecast
IFX stock has a Strong Buy rating on TipRanks, with a total of 16 ratings on TipRanks. It includes 13 Buy, two Hold, and one Sell recommendations.
The average target price of €43.48 shows an upside of almost 30% from the current trading level.
Conclusion
Both DTE and IFX have gained positive ratings from analysts following their recently reported numbers.
Analysts are upbeat about DTE stock based on its record numbers in 2022 results and even better guidance numbers for 2023.
For IFX, strong top-line growth along with higher margins will boost the company’s next set of results.
