First Berlin – ad pepper media International N.V. Research Update (25/01/2018)

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 ADD rating and increased the price target from EUR 4.30 to EUR 4.50.

On 24 January, ad pepper reported preliminary 2017 figures which showed record sales and earnings and topped our forecasts. Sales grew 24% y/y to €75.6m and EBITDA 26% y/y to €2.2m. Thanks to the strong Q4, ad pepper topped its EBITDA guidance of >€1.5m. We believe that the buoyant online advertising markets and the company's very good competitive position will continue to drive growth and profitability this year. An updated DCF model yields a new price target of €4.50 (previously: €4.30). We reiterate our Add rating.