First Berlin – ad pepper media International N.V. Research Update (07/04/2021)

First Berlin Equity Research has published a research update on ad pepper media International N.V. (ISIN: NL0000238145). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and increased the price target from EUR 7.60 to EUR 8.30.

Abstract
ad pepper media International has published its 2020 annual report. Final figures match preliminaries. In 2020, the digitisation trend was reinforced by the pandemic, as many shops had to close their offline business for months. More online shopping means more digital advertising. As a pure digital performance marketing company, ad pepper immensely benefitted from this development. Currently, the 3rd pandemic wave is mounting in Europe, and we believe that ad pepper is very well positioned to serve its customers with its digital performance marketing products. For 2021, we forecast 10% revenue growth and an EBITDA margin increase to 27.5%. Management is guiding for double-digit growth, and we expect more concrete company guidance with the publication of the Q1 figures. ad pepper will hire new staff, and invest in new products, services & markets. We stick to our view that ad pepper is a company with a very attractive business model. ad pepper offers all the ingredients investors appreciate: growth, high profitability, a platform model (Webgains), a very strong balance sheet, strong free cash flow generation, and a share buyback programme. An updated DCF model yields a new price target of €8.30 (previously: €7.60). We confirm our Buy rating.