Nucor earnings beat by $0.08, revenue fell short of estimates
On Thursday, Barclays (LON:BARC) analyst Simon Coles adjusted the rating for Freenet (ETR:FNTGn) AG (FNTN:GR) (OTC: FRTAF), shifting from Overweight to Equalweight and slightly increasing the price target to EUR37.50 from EUR37.00. Coles noted that Freenet is showing solid commercial trends for 2025, with its IPTV business gaining momentum and mobile operations expected to improve due to advantageous wholesale deals secured in 2024.
Freenet’s management has provided guidance at the company’s recent Capital Markets Day (CMD), forecasting appealing EBITDA growth at approximately 4% compounded annual growth rate (CAGR) from 2023 to 2028, which aligns with Barclays’ estimates. However, the free cash flow (FCF) growth is anticipated to be more modest at around 5% CAGR, slightly above Barclays’ 4% estimate, primarily due to an increase in taxes.
Coles mentioned that the stock’s value has already integrated the positive outlook following its robust performance after the fourth-quarter 2024 results were announced. Given the competitive landscape in Germany, Coles believes there is limited potential for the stock to outperform estimates. While acknowledging that market consolidation could pose an upside risk, Barclays prefers Deutsche Telekom (OTC:DTEGY) (rated Overweight) for investors seeking exposure to such market dynamics.
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