First Berlin – ad pepper media International N.V. Research Update (19/07/2021)

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 maintained his EUR 8.40 price target.

ad pepper has reported preliminary Q2 figures. Revenue grew almost 7% to €6.5m and EBITDA amounted to €1.0m. This is below the prior year figure (€1.7m) which benefitted from a positive one-off effect of €0.6m. EBITDA was 17% below our forecast due mainly to a weaker result at the ad pepper media segment which could not compensate for weak demand from some large customers. However, ad pepper expects a very strong Q3 with group revenue of ca. €7m, which is ahead of our forecast and will partly compensate for the weaker Q2. We have adjusted our forecast for 2021. The strong Q3 outlook causes us to increase our revenue estimate, but we lower our EBITDA forecast mainly to reflect a weaker ad pepper media segment EBITDA contribution. An updated DCF model still yields a €8.40 price target. We confirm our Buy rating.