Berenberg assumes coverage on freenet stock with Buy rating

Published 26/06/2025, 12:40
Berenberg assumes coverage on freenet stock with Buy rating

Investing.com - Berenberg has assumed coverage on freenet AG (ETR:FNTN) (OTC:FRTAF) with a Buy rating and a price target of EUR32.00, representing approximately 18% upside potential.

The research firm’s coverage transfer comes at what it describes as "an attractive entry point for investors" following a significant pullback in the share price, which has declined approximately 20% since freenet’s Q1 2025 results, despite management reiterating its full-year 2025 guidance.

Berenberg highlights freenet’s "sector-leading cash returns that are expected to grow," supported by the company’s projected three-year EBITDA compound annual growth rate of 5% through fiscal year 2028, which exceeds the sector average of 3%.

The firm notes that recent investor focus has centered on waipu.tv subscriber additions and mobile ARPU (average revenue per user) growth expectations, though specific details on these metrics were not provided in the coverage initiation.

The EUR32.00 price target is based on a discounted cash flow (DCF) analysis, according to Berenberg’s research note on the German telecommunications and media company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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