United Internet initiated with "buy"

02.08.06 - Deutsche Bank

LONDON, August 2 (newratings.com) - Analyst Benjamin Kohnke of Deutsche Bank initiates coverage of United Internet (UTDI) with a "buy" rating. The target price is set to ?12.50.

In a research note published this morning, the analyst mentions that the current valuation of United Internet's stock undervalues the company's growth potential. The company's EBITDA margins are expected to rise from 16.1% to 18.4% during FY05-FY08, benefiting from significant revenue expansion, the analyst adds.