UBS has adjusted its target price for 1&1 from €21 to €20 while keeping its "buy" recommendation.
The revision was prompted by concerns about increasing competition in the low-cost segment, as indicated by the latest quarterly results from mobile operators in Germany.
Analyst Polo Tang acknowledged these competitive pressures in his sector commentary. However, Tang remains optimistic about United Internet and 1&1 due to their long-term mobile partnership with Vodafone, which has been in place for 18 years. This partnership is expected to give them a competitive advantage in the changing market landscape.