UBS has raised its price target for Deutsche Telekom to 31 euros from 28 euros, while keeping a "Neutral" rating.
The adjustment comes after the latest quarterly figures from mobile phone providers in Germany were released, which raised concerns about increased competition, particularly in the low-cost segment, according to analyst Polo Tang.
Despite these competitive pressures, Tang remains optimistic about Deutsche Telekom's long-term prospects.
The company is expected to achieve defensive earnings growth, with earnings per share (EPS) projected to exceed 11 percent, and annual shareholder returns of over 4 percent.