Update shared on 01 Nov 2025
Fair value Decreased 0.12%Narrative Update on United Internet: Analyst Price Target Revision
Analysts have slightly lowered their price target for United Internet from €30.80 to approximately €30.76, citing adjusted sector ratings and expectations of near-term benefits from industry mergers.
Analyst Commentary
Bullish Takeaways
- Bullish analysts highlight the recent upgrade in sector ratings, suggesting increased confidence in the company's relative position.
- Expectations are for near-term share outperformance, particularly as potential industry mergers unfold and reshape the market landscape.
- The revised price target, while only slightly changed, reflects stability in the company's valuation amid sector shifts.
- Ongoing changes among telecom operators are viewed as catalysts that could unlock further growth opportunities for United Internet.
Bearish Takeaways
- Despite the bullish shift in rating, the price target remains moderate, signaling caution about the extent of upside potential.
- Bearish analysts express reservations regarding execution risks, particularly in realizing synergies from potential industry consolidation.
- Current valuation appears fair when adjusting for the competitive landscape. This limits the likelihood of significant rerating in the short term.
What's in the News
- United Internet AG has confirmed its earnings guidance for the full-year 2025, expecting consolidated sales to rise to approximately EUR 6.45 billion. This compares to EUR 6.303 billion in the previous year (Key Developments).
Valuation Changes
- Consensus Analyst Price Target: Adjusted marginally downward from €30.80 to €30.76.
- Discount Rate: Increased from 4.76% to 5.26%, reflecting a higher cost of capital.
- Revenue Growth: Edged down slightly from 3.12% to 3.12% year over year.
- Net Profit Margin: Narrowed modestly, shifting from 7.52% to 7.49%.
- Future P/E: Rose from 11.43x to 11.63x, indicating a minor increase in expected valuation multiples.
Disclaimer
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