UBS cuts Freenet to 'sell' on mobile network headwinds

freenet AG

06/05/2022 12:29

** UBS cuts German mobile retailer Freenet  FNTGn.DE  to
"sell" from "neutral" after share outperformance, citing caution
on near-term headwinds and longer-term fundamentals
    ** In the short run, the brokerage sees Q1 results mixed
with weaker subscriber trends in the mobile sector given
regulatory changes to consumer contracts, such as ban on
automatic 12-month renewals
    ** UBS says the company could either lose retail share
and/or see lower levels of profitability in the longer term, as
mobile network operators increasingly use digital and direct
channels to save on dealer commissions
    ** Out of 16 analysts, nine rate the stock "buy" or higher,
four rate it "hold" and three "sell"
    ** Up to Thursday's close, the shares were up 13.3%​ YTD

 (Reporting by Anastasiia Kozlova)
 ((Anastasiia.Kozlova@thomsonreuters.com))