Freenet AG (OTCMKTS:FRTAF) Receives Average Recommendation of "Reduce" from Brokerages

Key Points

• Analyst sentiment is negative: Six analysts give Freenet an average recommendation of "Reduce" (2 sell, 3 hold, 1 buy), with recent downgrades from UBS and DZ Bank while Deutsche Bank remains a buy.
• Mixed quarterly results: Freenet reported EPS of $0.65, missing the $0.74 consensus, but posted revenue of $712.21 million versus expectations of $611.50 million.
• Shares opened at $29.77, below both the 50‑day ($33.55) and 200‑day ($33.00) SMAs; the company has a market cap of $3.54 billion, a P/E of 11.45 and weak liquidity metrics (current ratio 0.68, quick ratio 0.64).

Shares of Freenet AG (OTCMKTS:FRTAF - Get Free Report) have received an average recommendation of "Reduce" from the six analysts that are currently covering the firm, MarketBeat reports. Two investment analysts have rated the stock with a sell recommendation, three have assigned a hold recommendation and one has given a buy recommendation to the company.

Several equities analysts have issued reports on the stock. UBS Group lowered shares of Freenet from a "buy" rating to a "sell" rating in a report on Wednesday, February 18th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating on shares of Freenet in a research note on Wednesday, January 21st. Finally, DZ Bank downgraded shares of Freenet from a "strong-buy" rating to a "hold" rating in a research note on Friday, March 13th.

Freenet Price Performance

OTCMKTS FRTAF opened at $29.77 on Wednesday. The firm's fifty day simple moving average is $33.55 and its two-hundred day simple moving average is $33.00. The company has a current ratio of 0.68, a quick ratio of 0.64 and a debt-to-equity ratio of 0.14. Freenet has a 12-month low of $29.77 and a 12-month high of $35.41. The firm has a market capitalization of $3.54 billion, a P/E ratio of 11.45 and a beta of -0.01.

Freenet (OTCMKTS:FRTAF - Get Free Report) last released its quarterly earnings results on Thursday, March 19th. The company reported $0.65 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.74 by ($0.09). Freenet had a return on equity of 18.46% and a net margin of 11.14%.The firm had revenue of $712.21 million during the quarter, compared to analysts' expectations of $611.50 million.

About Freenet

Freenet AG is a Germany-based telecommunications and digital services provider offering a broad portfolio of consumer and business solutions. The company specializes in distributing mobile communications services, including contract and prepaid offerings from major network operators, as well as providing broadband internet access, cable and IPTV television, and related hardware such as routers and set-top boxes. Through its digital lifestyle segment, Freenet AG also delivers value-added services and digital content, ranging from music and video streaming to online gaming and e-books.

In its mobile communications division, Freenet AG acts as a sales and service partner for leading German network operators, managing customer acquisition, billing, and technical support.

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