UBS has adjusted its price target for 1&1 from 21 euros to 20 euros, but still maintains a "Buy" rating.
The adjustment was made in response to the latest quarterly figures from mobile phone providers in Germany, which raised concerns about increasing competition in the low-cost segment.
Analyst Polo Tang acknowledged these trends in his industry commentary.
Despite the short-term challenges, 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.