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On Monday, Citi analysts raised the price target for United Internet (ETR:UTDI) stock to €29 from the previous €21, while maintaining a Buy rating. The decision comes as the analysts see potential in the company’s assets, particularly the infrastructure asset 1&1 Versatel, despite the recent strong performance of United Internet shares.
Citi analysts highlighted that the company’s shares remain mispriced, with an enterprise value close to zero. They noted that United Internet’s assets include valuable components such as b2c applications and the higher-value infrastructure asset 1&1 Versatel. The analysts also pointed out that while clarity on tower access and low band spectrum remains limited, the progress in 1&1 customer migration has returned to its full run-rate.
The migration progress is expected to positively impact the company’s EBITDA, which should return to growth next year. This growth is anticipated as savings from international roaming and VoIP begin to materialize and migration-related investments decrease. Citi analysts mentioned that they are 3%-5% above consensus on group EBITDA for fiscal years 2026 and 2027, driven by higher performance from 1&1 and IONOS.
The updated price target and maintained Buy rating reflect Citi’s optimism about United Internet’s listed assets and their potential for growth. The analysts believe that once the migration is complete and cost savings are realized, the company’s financial performance should improve significantly.
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