FRANKFURT (dpa-AFX) - A positive study by Berenberg Bank gave the shares of Internet service provider Ionos a strong boost on Thursday. In early trading they reached 18.16 euros, their highest level since the Berenberg IPO almost a year ago. Most recently, they were slightly lower, gaining 4.5 percent as the best value in the second-line index SDax. In February 2023, they started at EUR 18.40, just below the issue price of EUR 18.50.

Berenberg analyst Usman Ghazi raised his earnings estimates for United Internet 's web hosting subsidiary by more than 20 percent. He raised his price target from 22 to 28 euros. He referred to the debt refinancing of Ionos and the outlook published in December. According to him, the margin targets still have room for improvement.

According to the internet service provider, sales and profit margins should continue to increase in the next two years. Growth will be driven by higher prices, new customer acquisition and new products in the field of artificial intelligence (AI).

Ionos shares had already risen sharply in December in response to the company's forecast - to almost 18 euros. After that, the air seemed to be out for the time being. Despite the share price rally, Ionos is still wrongly valued if one takes into account sales increases in the double-digit percentage range per year and views Ionos as an early beneficiary of the AI megatrend, wrote expert Ghazi.

Analyst Andre Lee from Goldman Sachs also became more optimistic on Thursday. He raised his price target from 20 to 22 euros and confirmed his buy recommendation./ajx/tav/mis