Goldman Sachs Maintains Neutral Rating on Freenet, Sets Price Target at 30 Euros
Analysts Cite Company's Growing Broadband Customer Base
Goldman Sachs has maintained its "neutral" rating on German telecom company Freenet, while setting a price target of 30 euros per share. The decision comes amid a strong performance by the company's broadband segment, which has seen a surge in customer numbers.
Positive Factors:
- Freenet's broadband customer base has grown to 6.5 million, a 15% increase year-over-year.
- The company's fiber-optic network expansion is expected to further boost customer growth.
- Freenet's mobile business remains stable, providing a steady revenue stream.
Neutral Factors:
- Competition in the German telecom market is intense, with major players like Deutsche Telekom and Vodafone.
- Regulatory changes could impact Freenet's profitability in the future.
Negative Factors:
- Freenet's debt levels are relatively high.
- The company's profitability margins have declined in recent years.
Analyst Commentary:
Goldman Sachs analysts believe that Freenet's strong broadband growth is a key factor in their decision to maintain a neutral rating. However, they caution that the competitive landscape and regulatory risks could pose challenges for the company going forward.
Overall, the analysts see Freenet as a well-positioned player in the German telecom market, but they believe that the company's valuation is fair at current levels.
