Deutsche Bank AG’s telecommunications analysts have something to brag about.
(Bloomberg) — Deutsche Bank AG’s telecommunications analysts have something to brag about.
Little more than two months after they flagged the risk of 1&1 AG switching its contract provider away from Telefonica Deutschland Holding AG, the unit of United Internet AG did exactly that.
1&1 said Wednesday it secured a deal with Vodafone Group Plc that will let it resell 5G services in Germany. 1&1 shares surged, while those of Telefonica Deutschland plunged.
1&1 Shares Soar After German Roaming Deal With Vodafone
Citing the risk of 1&1 switching its contract provider in a May 19 note, Deutsche Bank analysts including Keval Khiroya upgraded 1&1 to buy from hold. They simultaneously downgraded Telefonica Deutschland to hold from buy, warning of “material free cashflow downside” if such an event occurred.
1&1 shares have risen 24% since the Deutsche Bank upgrade, while Telefonica Deutschland has fallen 31%.
Khiroya declined to comment when contacted by Bloomberg News on Thursday.
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