UBS cuts United Internet to 'neutral' after shares rally

United Internet AG

09/01/2024 11:25

** UBS downgrades internet services company United Internet
AG  UTDI.DE  to "neutral" from "buy" following an 80% re-rating
in the past six months
    ** United Internet should nevertheless benefit from
subsidiary 1&1 signing an 18-year roaming agreement with
Vodafone  VOD.L ,  UBS says, noting this makes the company's
outlook more certain
    ** 1&1 limiting any costly network build could also be good
for the shares, says UBS, and it thinks the agreement with
Vodafone now makes this possible
    ** M&A between Telefonica Deutschland  O2Dn.DE  and 1&1 is
also possible, UBS says, and this could further boost United
Internet shares
    ** Out of 18 analysts who cover United Internet, 11 rate it
at "buy" and six at "hold" - LSEG
  
    

 (Reporting by Louis van Boxel-Woolf)
 ((Louis.vanBoxel-Woolf@thomsonreuters.com))