First Berlin – Intershop Communications AG Research Update (09/11/2017)

First Berlin Equity Research has published a research update on Intershop Communications AG (ISIN: DE000A0EPUH1). Analyst Karsten von Blumenthal downgraded the stock to SELL but increased the price target from EUR 1.44 to EUR 1.51.

On 2 November, Intershop published Q3 figures and held a conference call. Revenues grew slightly y/y to €8.4m. EBIT improved significantly y/y and was in positive territory at €18k. Based on the 9M figures, Intershop looks set to reach its guidance (slightly higher revenues and break-even EBIT). Both 2018E multiples and our DCF model imply that the stock is overvalued. An updated DCF model yields a price target of €1.51 (previously: €1.44). We downgrade the stock from Reduce to Sell.