Exane cuts 1&1, United Internet to 'neutral' on risk of further profit warnings

1&1 AG

15/08/2024 08:59

** Exane BNP Paribas downgrades German internet services
company United Internet  UTDI.DE  and its mobile and broadband
unit 1&1  1U1.DE  to "neutral" from "outperform", citing a risk
of further profit warnings in the medium term
    ** Last week, 1&1 cut its guidance due to a network outage,
which shows there are still technical challenges ahead of the
company's strategy, Exane says
    ** The national roaming agreement 1&1 signed with Vodafone
in 2023 is also behind schedule, causing further doubts, it says
    ** "We also see signs that German mobile competition is
ramping up again," Exane adds
    ** Out of 17 analysts that cover United Internet, 12 rate it
"strong buy"/"buy" and ​five "hold"
    ** Seven out of 17 analysts rate 1&1 "strong buy"/"buy",
with ​nine at "hold" and one at "strong sell"

 (Reporting by Isabel Demetz and Bernadette Hogg)
 ((Isabel.demetz@thomsonreuters.com))