United Internet "overweight," target price raised

30.01.07 - J.P. Morgan Securities

LONDON, January 30 (newratings.com) - Analysts at JP Morgan maintain their "overweight" rating on United Internet AG (UTDI). The target price has been raised from ?13.5 to ?16.5.

In a research note published this morning, the analysts mention that there is renewed investor optimism regarding the company?s business model following the launch of 3DSL, the encouraging 4Q commentary and the improved wholesale terms. The upward revision in the target price reflects a potential reduction in United Internet?s cost base on account of the extension of the company?s partnership with Telefonica Germany, the analysts say.