United Internet stock rises 60% on 1&1 telecom frequency benefits

United Internet shares were promoted to the MDAX index on Monday, following a nearly 60% price increase over the previous three months. The rally was driven primarily by its subsidiary 1&1, a telecom company, which benefits from the German network agency suspending further mobile frequency auctions. This allows 1&1 to access cheaper frequencies from Vodafone for a longer period. Other subsidiaries include Jonas, which listed this year and recently recovered from pressure, as well as Web.de and GMX. Analysts from Bärenberg and Warburg set a price target of 40 euros, which is double the current share price. The stock is viewed as a conglomerate where the valuation is often dragged down by its weakest component, previously 1&1. One host views the stock as a valuable holding due to the 1&1 frequency advantage and analyst targets, while the other criticizes the conglomerate structure, preferring to buy individual subsidiaries like 1&1 directly rather than the parent company.