United Internet AG: The portfolio should deliver; maintain Buy

Research evidence excerpt

United Internet AG: The portfolio should deliver; maintain Buy

Deutsche Bank

Research

Rating Company Date

Buy United Internet AG 21 May 2026

Forecast Change

Europe

Germany

Reuters Bloomberg Exchange Ticker Price at 20 May 2026 (EUR) 27.08

UTDI.DE UTDI GR GER UTDI

Price Target (EUR) 34.00

Telecommunications

ADR ISIN 52-week range (EUR) 29.90 - 22.68

Wireless Services

UDIRY US9107211099

The portfolio should deliver; maintain

Valuation & Risks Buy

Nizla Naizer

A tale of two large portfolio companies Research Analyst

With an 86% stake in Buy-rated 1&1 AG and a 64% stake in Buy-rated IONOS, UTDI +44-20-754-12403

is a story of these two large fully-consolidated companies that drive its own

Tarun Mittal

financials (collectively ~91% of UTDI group adj. EBITDA). In Q1, 1&1 saw in-line Research Associate

revenue but contributed to a miss on group EBITDA. 1&1 kept its full-year EBITDA

outlook unchanged however, implying a likely better H2. Similarly, with IONOS, full-

year guidance for adj. EBITDA was unchanged but Q1 saw a step up in customer Key changes

acquisition (Q1 and Q4 see seasonally higher marketing investments). Our view on TP 31.00 to 34.00 ↑ 9.7%

the telco business, 1&1, is that there could be a potential scenario of consolidation DB EPS (EUR) 1.78 to 1.68 ↓ -5.6%

in the German telco market and this is baked into the target price (see here). On

Source: Deutsche Bank

IONOS, we believe growth should accelerate with strong customer additions in

recent quarters contributing to ARPU growth as the year progresses (see here). Price/price relative

With this update, we simplify our SOTP for UTDI following the sale of Versatel to 1&1 40

AG and maintain our Buy on a TP of ~EUR34 for UTDI. 30

Guidance for the underlying firms reiterated, supporting UTDI's own outlook