Hauck Aufhäuser IB reiterates 'Buy' rating for Freenet, sets target price of €34

German investment bank Hauck Aufhäuser IB has reiterated its 'Buy' rating for Freenet, a German telecommunications company, and set a target price of €34 per share.

In a research note published on Tuesday, analyst Jens Earnshaw said that Freenet is "well-positioned to benefit from the ongoing consolidation in the German telecommunications market." He added that the company's "strong cash flow generation and attractive dividend yield" make it a compelling investment opportunity.

Earnshaw's target price of €34 represents a potential upside of over 20% from Freenet's current share price of €28.20.

Freenet is one of the largest telecommunications providers in Germany, with over 20 million customers. The company offers a wide range of services, including fixed-line, mobile, and broadband internet.

In recent years, Freenet has been expanding its operations through a series of acquisitions. In 2019, the company acquired Mobilcom-Debitel, a leading German mobile virtual network operator. In 2020, Freenet acquired Tele Columbus, a cable broadband provider.

These acquisitions have helped Freenet to become a more diversified and competitive player in the German telecommunications market. The company is now well-positioned to benefit from the ongoing consolidation in the industry.

In addition to its strong market position, Freenet also has a strong financial profile. The company has a healthy balance sheet and generates strong cash flow. This has allowed Freenet to invest in its network and services, while also returning cash to shareholders through dividends.

Overall, Hauck Aufhäuser IB's 'Buy' rating for Freenet is well-founded. The company is well-positioned to benefit from the ongoing consolidation in the German telecommunications market, and it has a strong financial profile.

Investors should consider adding Freenet to their portfolios.