First Berlin – ad pepper media International N.V. Research Update (20/11/2020)

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 6.00 price target.

ad pepper presented final Q3 figures which matched preliminary revenue and EBITDA. Q3 EBIT quadrupled y/y to €1.2m and net income rose from €-16k to €896k. This demonstrates good operating leverage since Q3 sales increased by only 20%. Given the strength of the second pandemic wave in Europe and the increasingly restrictive countermeasures by many national governments, the e-commerce sector is preparing for very strong Christmas business with many people set to refrain from traditional shopping. This will result in higher budgets for digital advertising campaigns, and ad pepper will certainly benefit from this development as a digital marketing pure play. We confirm our forecasts, the Buy rating and €6.00 price target.