First Berlin – Media and Games Invest SE Research Update (18/11/2021)

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 8.00 to EUR 8.20.

Third quarter reporting featured topline growth of ~80% with revenue hitting €63m (FBe: €61m) spurred by 41% organic sales growth (OSG). This marked the third consecutive quarter in which OSG topped 35% and should further reassure investors that MGI is not simply acquiring growth. Thanks to scale and unlocked synergy effects, earnings grew at an even stronger clip led by EBITDA (+197% Y/Y) and adj. EBIT (+275%). And market trends towards digital products and services suggest business momentum should continue. The results have the company tracking well towards company guidance (sales: €234m to €254m; EBITDA: €65m to €70m), and we have bumped up FBe to the mid-points of these ranges. We reiterate our Buy rating with an €8.2 price target (old: €8.0).