UBS cuts Freenet stock rating to neutral, target to EUR31.50

Published 14/02/2025, 07:42
UBS cuts Freenet stock rating to neutral, target to EUR31.50

On Friday, UBS analysts downgraded Freenet (ETR:FNTGn) AG (FNTN:GR) (OTC: FRTAF) stock from Buy to Neutral, adjusting the price target to EUR31.50. The decision came as Freenet shares have seen a significant increase, trading up over 30% in the past 12 months and nearing a multi-year peak that was last observed between 2015 and 2018.

UBS's analysis indicates that while Freenet has performed well in the mobile and TV sectors within the German market, the future outlook presents a mixed picture. The mobile segment remains robust, and there is potential for EUR50-100 million in share buybacks. However, Waipu TV, another segment of Freenet's business, is experiencing a deceleration in growth.

The firm also noted seasonal patterns in Freenet's share price performance, typically showing strength in the first and last quarters of the year but weakening in the second quarter following the ex-dividend date in May. This trend aligns with UBS Crowding Data, which currently demonstrates a slight positive bias.

Looking forward, key events that could influence Freenet's stock include the release of the company's fourth-quarter results on March 5 and the upcoming ex-dividend date on May 15. These milestones may serve as catalysts for the stock's future movement in the market.

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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