Last week Telefonica announced the launch of an offer for its German subsidiary, released its Q3 numbers and presented its guidance for 2024-26.
Regarding TEF Deutschland, we believe that Telefonica has launched a very timely and good offer. The new strategic plan is not that surprising, but the future regular growth in FCF is promising. We believe the current dividend to be secure (it could even be increased from 2024).
We maintain our opinion at buy on the stock.
