STOCKS NEWS EUROPE-D.Telekom leads DAX on strong Q3

Deutsche Telekom (DTEGn.DE) shares rise 1.3 percent, making them the strongest gainers among Frankfurt's largecaps .GDAXI, after the telecom operator reports consensus beating third-quarter figures which include much better than expected bottom line figures.

"While group revenues were bang in line with our estimates, Deutsche Telekom could clearly beat our forecasts as well as consensus on the adjusted EBITDA side ... Even more importantly, Deutsche Telekom confirmed its guidance for FY 2009," LBBW analyst Stefan Borscheid says.

Citigroup analyst Terence Sinclair, who upgrade the company to "buy" from "hold" after the results, says Deutsche Telekom offers good yield and estimates support.

"Limited operational pressure and cost cuts support dividend expectations with FX headwinds diminishing after the fourth quarter of 2009. Note the cost control suggesting DSL growth in 2010 will feed upgrades," Sinclair says.

The DAX is down 1.4 percent. For more double click on [ID:nFAB015308]

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