First Berlin – Media and Games Invest SE Research Update (16/07/2021)

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 increased the price target from EUR 6.80 to EUR 8.00.

Abstract
MGI has inked a deal to take over Smaato Inc for €140m. The San Francisco-based digital AdTech company projects 2021 revenues of €39m with adjusted EBITDA of €13m (33% margin). We expect Smaato to significantly boost MGI's topline and profitability going forward, to become a central component of the Media segment, and be a strong addition to MGI's AdTech value chain. In our view, the business combination should also provide good synergies to the Gaming segment. We up our price target to €8.0 (old: €6.8) and remain Buy-rated on MGI.