Jul. 13 at 1:47 PM
IONOS shares rose after Bank of America Global Research initiated coverage with a Buy rating and a €37 price target, citing the company's exposure to rising demand for sovereign cloud services in Europe and an attractive multi-year earnings growth outlook.
BofA forecasts revenue to grow at a roughly 8% CAGR between 2025 and 2028, while adjusted EPS is expected to increase at about 17% annually over the same period. The firm believes this growth profile is not fully reflected in the current valuation.
The bullish initiation came as IONOS was already showing positive technical momentum, with multiple moving averages trending higher. Despite reaffirming 2026 revenue growth guidance of 7% and an EBITDA margin target of 37%–38%, the stock was still trading well below its 52-week high of €43.25, reinforcing BofA's valuation case.
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