United Internet "buy," target price raised

27.05.09 - Deutsche Bank

LONDON, May 27 (newratings.com) - Analysts at Deutsche Bank maintain their "buy" rating on United Internet (UTDI). The target price has been raised from ?10.50 to ?12.00.

In a research note published this morning, the analysts mention that the company?s deal to acquire FNT?s DSL customers appears to be a favorable one. Operational synergies are expected to boost United Internet?s FY10 earnings by nearly 10%, the analysts add. The German broadband market is expected to witness further consolidation in the forthcoming months, which would benefit United Internet, Deutsche Bank says.