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DAX 40: Deutsche Telekom and Infineon Report Earnings

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.

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.

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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.

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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.

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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.

Disclosure

Kirti Tak
Kirti Tak is a post-graduate with a MBA degree from ICFAI Bangalore. She has around 5 years of experience in writing articles in financial domain. Before joining TipRanks, she was a freelance writer, writing about personal finance, deal analysis, stocks, and more. In her previous experience, she has worked on different projects including report writing and financial analysis at WNS Global Services. She also enjoyed writing stock analysis for the companies listed on NYSE, NASDAQ & LSE during her tenure at Fusion Outsourcing. She believes in keeping her articles simple and crisp. In her free time, she enjoys listening to music, doing some DIY art, and cooking.