Deutsche Telekom Enters Digital Health Market with synedra Acquisition, Stock Upgraded
Deutsche Telekom is expanding into the digital health market with its acquisition of Austrian IT specialist synedra. The move comes as analysts upgrade the company's stock and express optimism about its strategic realignment. Meanwhile, Telekom is increasing prices for fixed-network voice tariffs due to rising operating costs and a shrinking customer base.
The acquisition of synedra, which brings its own AI platform for managing health data, positions Telekom in the growth-oriented health sector. This sector promises high growth rates due to demographic change and cost pressure on healthcare systems. The deal also includes synedra's sister company akedis Innovations, specialising in interoperable solutions in healthcare.
Analysts have responded positively to Telekom's strategic move. ODDO BHF has upgraded the company's stock from 'Neutral' to 'Buy'. The current consensus among analysts is a best buy recommendation for Deutsche Telekom shares, with a majority rating the stock as a buy and expecting significant upside potential. The average target price is around €40.77 to €41.00, implying an upside of approximately 40-41% from current levels.
Telekom aims to generate stable cash flows from its fixed-network business while positioning itself in the future digital health market. However, the company is also facing challenges in its traditional business. From October, it will increase prices for pure fixed-network voice tariffs by up to three euros due to increased operating costs and a shrinking customer base.
Telekom will present its Q3 figures on November 13. Analysts expect robust operational development despite the solid market position and attractive dividend perspective. Meanwhile, the acquisition of synedra signals Telekom's commitment to growth in the digital health market, a sector with significant long-term potential.
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