First Berlin – ad pepper media International N.V. Research Update (09/01/2018)

First Berlin Equity Research on 09/01/2018 initiated coverage on ad pepper media International N.V. (ISIN: NL0000238145/ Bloomberg: APM GR). Analyst Dr. Karsten von Blumenthal placed a ADD rating on the stock, with a EUR 4.30 price target.

Abstract
Founded in 1999, ad pepper media International N.V. (ad pepper) is a pioneer in online marketing and a performance marketing expert. Due to its international reach and excellent reputation the company boasts global players such as Nike and Samsung among its clientele. Its online marketing platform (Webgains) shows rapid growth. The positive network effects of the platform offer large scaling potential and margin improvement. Furthermore, based on a cooperation with IBM, Webgains will utilise innovative online marketing technologies to further improve its marketing performance. The use of artificial intelligence and sophisticated analytical software (IBM Watson) look set to give ad pepper a competitive edge and generate further growth with increasing margins. A buoyant global online marketing sector, for which double-digit growth rates in coming years are forecast, will be very supportive. We initiate coverage with an Add rating and €4.30 price target.