First Berlin – ad pepper media International N.V. Research Update (18/02/2019)

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 decreased the price target from EUR 4.00 to EUR 3.00.

ad pepper media has reported preliminary figures. Despite revenue and gross profit growth, EBITDA & EBIT were below the previous year's figures and our forecasts. The main reasons are higher OPEX and one-off costs for restructuring the ad agents subsidiary. Net revenue grew 8% y/y to €20.3m, but EBITDA declined 39% y/y to €1.4m. Given the increased macroeconomic risks (Brexit, weaker growth in Europe), and lowered growth forecasts for the advertising sector, we reduce our estimates for 2019E and the following years. An updated DCF model yields a new price target of €3.00 (previously: €4.00). The rating remains Buy.