1&1 Analysts Opinions

Investments
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1

I=5

  • Deutshe Bank maintained 1&1 buy rating and a price target of 17 euros after holding an event with the management.
  • Analyst Keval Khiroya said the management’s comments underpinned his views that 1&1 has significant potential whether they build their own network or not.
  • He said that 1&1’s agreement with Vodafone reduces the need for a complete network expansion.
2

I=6

  • Berenberg lowered 1&1 price target to 30 euros from 38 and maintained buy rating.
  • Analyst Usman Ghazi said 1&1 is still deeply undervalued despite a 40% recovery in the stock.
  • He expects its second half revenue to exceeds market expectations.
  • He added that 1&1 EBITDA estimates are currently below the consensus estimate.

https://www.finanzen.net/analyse/1_1_buy-joh_berenberg_gossler__co_kg_berenberg_bank__909589

3

I=5

  • DZ Bank increases price target of 1&1 to 18.20 euros from 14.50 and maintained a buy rating on the stock.
  • Analyst Karsten Oblinger said the extension of spectrum usage which expires in 2025 will eliminate the risk of an escalating bidding war.

https://www.finanzen.net/analyse/1&1_kaufen-dz_bank_909863

4

  • Citigroup analysts Georgios Ierodiaconou and Martin Hammerschmidt sees the extension of spectrum allocation for 5 years as positive for 1&1.

    “An extension eliminates the risk of an expensive spectrum auction and increases the prospect of a positive outcome after the auction in 2030,” they wrote.

  • Referring to Vodafone agreement, they said concerns about the network development are medium-term in nature and pointed to a conceivable merger.

  • They added that bundling of frequencies in 2030 will save network operators significant costs.

5
  • UBS maintained 1&1 price target of 20.70 euros and their buy rating on the stock.
  • Analyst Polo Tang said that the possible extension of the useful life of those frequencies would increase the likelihood that 1&1 scales back its network buildout and the high costs involved in the auction would be avoided.
6

I=6

  • UBS maintained 1&1 buy rating.
  • Analyst Polo Tang said conversations with European executives and regulatory authorities from telecommunications industry confirm that 1&1 have cut back on plans to build their own network.
1 Like
7

I=4, November 22, 2023

Buy, €20: Analyst Andrew Lee of Goldman Sachs sees the announcement of cell phone network launch as positive, especially with the new 5G roaming deal with Telefonica Deutscheland.

https://www.finanzen.net/analyse/1&1_buy-goldman_sachs_group_inc._922476

8

I=4

  • Buy, €17->€19: Deutsche Bank analyst, Robert Grindle, expects 2024 to be a better year for the telecommunications sector.
  • He said 1&1 is their favourite choice among small operators.
9

SI=-2%, I=4
Buy->neutral; €20: Goldman sachs analyst downgraded 1&1 due to its comparatively strong price development.

10

I=4

  • Buy: Analyst Robert Grindle of Deutsche Bank said 1&1’s 2024 goals are above market expectations and support their assessment of existing upward potential.
  • Buy, €18.20->20.10: Analyst Karsten Oblinger of DZ Bank said he raised his 1&1 2024 estimates following the company’s 2024 outlook that exceeded market expectations.
1 Like
11

I=4
Equal weight, €13->€20: Analyst Mathieu Robilliard of Barclays said the 2024 management outlook was very positive and above market expectations.

https://www.finanzen.net/analyse/1_1_equal_weight-barclays_capital_926688

12

I=4, SI=1.5%
Buy, €30->€32: Analyst Usman Ghazi said the recently published strong 2024 management outlook is a turning point in profit development and added that the low-band frequencies is the missing piece of a puzzle that could lead to more dividends and acquisition of remaining shares by the United Internet once obtained.

13

I=5

  • Buy, €20.10->€22.10: Following the addition of 1&1 to the TecDAX selection index, analyst Karsten Oblinger of DZ Bank said the higher value reflects the general market developments since November.
  • TecDax index tracks the performance of 30 largest tech companies in Germany.
14

I=3
Buy, €19-> €21: Deutsche Bank analyst, Keval Khiroya said a spectrum auction provides 1&1 with a significant price potential and a lack of it leaves the door open for market consolidation, which will also support greater price potential.

1 Like
15

I=3
Buy->Sell, €10.20: Bernstein analyst Ottavio Adorisio said the usuall hype surrounding telecoms stocks at the beginning of the year has died earlier than usual this time round yet the risks of below-average return for the industry remains.

1 Like
16

Which usual hype? Do we see that telco stocks have higher valuations historically at the beginning of the year?

1 Like
17

Not sure if he’s referring to market capitalisation or valuations. Deutsche Telecom, Telefonica Deutscheland and T-Mobile historical data doesn’t point to specifically high valuations at the beginning of the year.

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18

To know this for sure, you would probably have to index or aggregate the data for all years to know their historical behavior throughout the year and if there is seasonality in particular companies or sectors. (not saying it should be done now btw)

I have heard that even indices like sp500 and these types also have seasons where they are historically stronger. But does not mean that is going to be met every year since it is only the average.

This is an example for sp500

1 Like
19

I=5
Buy, €22.0->€21.8: Analyst Polo Tang of UBS said media reports indicate that the spectrum in the 4G range could be passed on to existing users, hence eliminating an expensive auction . This made him to make minor adjustments for his 1&1 estimates.

1 Like
20

I=5

  • Underperform, €10.20: Analyst Ulrich Rathe of Bernstein expects 1&1 to show weaker momentum in acquiring new clients in Q1 compared to same period last year. With regards to the 800 MHz, he said local press reports indicate 1&1 can expect little or no support from competition authorities.
  • Buy, €21: Deutsche Bank analyst Keval Khiroya expects 1&1 to meet expectations in Q1. He sees potential in the company, with or without the frequencies.