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Investing.com - CFRA raised its price target on United Internet (ETR:UTDI:GR) stock to EUR27.00 from EUR22.00 on Wednesday, while maintaining a Buy rating on the German telecommunications company.
The research firm cited United Internet’s growing position as "the next major communication services provider in Germany" through its 1&1 brand as a key factor in the upgraded outlook. CFRA noted that capital expenditure pressures for United Internet will ease in 2025 following the German Federal Network Agency’s decision to extend existing spectrum usage rights until 2030.
The regulatory extension includes a requirement for existing operators to grant 1&1 access for shared spectrum use, providing United Internet with additional time and flexibility to internally fund future spectrum bids. This development supports the company’s long-term network expansion strategy in Germany.
United Internet recently strengthened its position by investing up to EUR300 million to increase its stake in subsidiary 1&1 from 80.8% to 90%. This move aligns with CFRA’s expectations regarding the company’s internal fundraising approach and demonstrates its commitment to the 1&1 business.
CFRA adjusted its earnings per share estimates for United Internet to EUR1.70 for 2025 and EUR2.10 for 2026, reflecting some anticipated impact from the company’s ongoing investments in its telecommunications infrastructure.
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