United Internet "buy," target price raised

31.10.07 - Deutsche Bank

LONDON, October 31 (newratings.com) - Analyst Benjamin Kohnke of Deutsche Bank maintains his "buy" rating on United Internet (UTDI). The target price has been raised from ?16.50 to ?18.50.

In a research note published this morning, the analyst mentions that the company?s reselling business model continues to provide robust growth opportunities. United Internet continues to have low capex requirements, while witnessing increasing gross margins, the analyst says. Webhosting and online advertising also offer profitable opportunities for the company, Deutsche Bank adds. A debt funded deal to acquire some assets of Freenet is also expected to boost the value of United Internet?s shares, the analyst states.