I=5
United Internet: Equal Weight->Overweight, €27->€28
1&1: Equal Weight->Overweight, €20.50->€24.50
Barclays analyst Ganesha Nagesha sees gradual improvement in fundamentals and potential consolidation. Nagesha pointed out that 1&1 would be exceptionally well positioned if deals were to emerge in the sector.
Nagesha sees 1&1 and United Internet reaching €37 and €40 respectively, in the best case scenario.
He flagged that market consolidation in Germany is currently not priced into either stock.
He also said a Radio Access Network company structure has been flagged as an additional option, enabling 1&1 avoid €400 million-€500 million per year on its 5G network.
Nagesha pointed out that 1&1’s operational performance is stabilising and forecasts service revenue growth of 1% CAGR over 2025-28.