First Berlin – Media and Games Invest SE Research Update (05/10/2021)

First Berlin Equity Research has published a research update on Media and Games Invest SE (ISIN: MT0000580101). Analyst Ellis Acklin reiterated his BUY rating and maintained his EUR 8.00 price target.

MGI is acquiring the Swedish programmatic advertising platform, Match2One (M2O). We regard this as a strategic deal to bolster its technology stack, while the initial financial impact will be low. Meanwhile, MGI shares have been weak of late after disappointing Q2 results from Swedish gaming peers. Plus, regulatory concerns have recently hurt sector sentiment after a crackdown by Chinese lawmakers on the country's video gaming industry. MGI does not have any direct exposure to China and already complies with tighter youth controls. The company also distinguished itself with a strong Q2 that included 36% organic growth. We think a good Q3 will further separate MGI from the Swedish pack. Our rating remains Buy with an unchanged €8 price target.