Deutsche Bank says you need to own these 10 telecom stocks as vaccine progress spurs a 2021 recovery for beaten-down sectors

  • Telecoms were hard hit at the start of the pandemic, treated as "super-cyclical," according to Deutsche Bank.
  • Now, with economic recovery on the cards for 2021, this sector is well-placed to gain.
  • Here are the 10 stocks Deutsche Bank think you should own.
  • Visit Business Insider's homepage for more stories.

European markets have been hard hit in 2020, with old-economy sectors like banking and energy suffering particularly acute losses, as the pandemic took a sledgehammer to their valuations.  Telecommunications companies were some of those worst affected by a massive macro sell-off, according to a Deutsche Bank note on Tuesday.

In fact, telcos are the second-worst performing sector in the European equity market this year, after the banking sector. The Stoxx Europe 600 telecoms index has lost nearly 18% so far in 2020, compared with the banking index, which has fallen by more than a quarter, or the top-performing sector – technology – which has gained 11%.

During the pandemic, cyclical stocks were particularly unloved by investors, as they are closely related to the performance of local and global economies, meaning as the world was forced into lockdowns that stymied economic activity, investors piled into stocks that looked poised to perform well regardless.

This lead to big boosts for the likes of Big Tech, such as Apple, Amazon and Facebook, and the so-called "stay at home stocks" like video conferencing company Zoom, or home entertainment-streaming platform Netflix.

The equity market has recovered from the depths of the coronavirus crisis earlier this year and the rollout of a series of COVID-19 vaccines since early November has unleashed a historic shift into more cyclical stocks. Typically, telecommunications companies are viewed as being more defensive in nature, but this was not the case when the market dived earlier in the year.

"Telcos sold off badly in the early stage of the crisis," Deutsche said, adding that the sector was "treated as a super-cyclical with high/geared correlation to local indices." 

Here are the 10 telecommunication stocks that Deutsche Bank thinks you should own to gain from the sector's recovery:

Iliad Group

  • Ticker: ILD.PA
  • Market cap: €10.17 bln
  • Old TP/New TP/ %change: 155.00/170.00/9.7%
  • Recommendation: Hold

Elisa Corporation

  • Ticker: ELISA.HE
  • Market cap: €7.45 bln
  • Old TP/New TP/ %change: 40.00/43.00/8.8%
  • Recommendation: Hold

Proximus NV

  • Ticker: PROX.BR
  • Market cap: €5.60 bln
  • Old TP/New TP/ %change: 20.50/21.50/4.9%
  • Recommendation: Hold


  • Ticker: TEL2b.ST
  • Market cap: $9.00 bln
  • Old TP/New TP/ %change: 117.00/122.00/4.3%
  • Recommendation: Hold

Telenor ASA

  • Ticker: TEL.OL
  • Market cap: $23.99 bln
  • Old TP/New TP/ %change: 155.00/161.00/3.9%
  • Recommendation: Hold

BT Group PLC

  • Ticker: BT.L
  • Market cap: £12.95 bln
  • Old TP/New TP/ %change: 135.00/140.00/3.7%
  • Recommendation: Hold

Vodafone Group PLC

  • Ticker: VOD.L
  • Market cap: £32.35 bln
  • Old TP/New TP/ %change: 230.00/237.00/3.0%
  • Recommendation: Buy


  • Ticker: SCMN.S
  • Market cap: £32.35 bln
  • Old TP/New TP/ %change: 523.00/538.00/2.9%
  • Recommendation: Hold

Orange Belgium

  • Ticker: OBEL.BR
  • Market cap: €1.31 bln
  • Old TP/New TP/ %change: 21.50/22.00/2.3%
  • Recommendation: Hold

Deutsche Telekom

  • Ticker: DTEGn.DE
  • Market cap: £1.31 bln
  • Old TP/New TP/ %change: 22.00/22.50/2.3%
  • Recommendation: Buy

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