HSBC cuts Freenet stock rating to Hold, raises target to EUR36

Published 07/05/2025, 11:36
HSBC cuts Freenet stock rating to Hold, raises target to EUR36

On Wednesday, HSBC analysts adjusted their stance on Freenet (ETR:FNTGn) AG (FNTN:GR) (OTC:FRTAF), downgrading the company’s stock rating from Buy to Hold while increasing the price target to EUR36.00, up from the previous EUR30.00. This decision follows a comprehensive review of Freenet’s mid-term guidance, which was released with the company’s 2024 financial results on March 25, 2023.

The revised forecasts from HSBC reflect a significant improvement, prompted by the better-than-expected guidance provided by Freenet. The analysts have based their new price target on a Discounted Cash Flow (DCF) analysis, which now stands at EUR36.00.

Despite the raised price target, HSBC analysts have tempered their outlook on the stock due to its robust year-to-date performance. The forecasts for Freenet are now broadly aligned with the consensus, leading to the conclusion that there is limited potential for further upside in the stock price.

The analysts noted in their commentary that while Freenet’s mid-term guidance has positively impacted their forecasts, the current valuation already reflects these expectations. Consequently, HSBC has shifted from a Buy to a Hold recommendation.

Investors in Freenet AG will now be watching the stock’s performance closely, considering HSBC’s updated perspective on the company’s future growth potential and stock valuation.

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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