1&1 recently released its quarterly results, which fell short of consensus estimates by over 20% due to increased costs associated with network expansion.
Despite this setback, UBS maintains its "Buy" rating for the company and has set a target price of 21 euros.
The stock experienced a significant decline, with prices dropping to 11.86 euros, reflecting an 8.20% decrease as of midday trading.
Over the past year, the stock has seen varied performance, ranging from 11.84 euros to a high of 19.78 euros.
The market's reaction to the quarterly figures indicates a cautious sentiment among investors, despite UBS's optimistic outlook.