First Berlin – publity AG Research Update (05/06/2019)

First Berlin Equity Research has published a research update on publity AG (ISIN: DE0006972508). Analyst Ellis Acklin downgraded the stock to ADD but increased the price target from EUR 30.00 to EUR 44.00.

publity announced guidance for 2019. The company expects to double the prior year net IFRS-income result. The bottom line is projected to approach €50m, thanks to strong developments in core asset management and nascent property management operations. publity has switched over to IFRS reporting, which we have applied to our forecasts and valuation model. We also incorporate initial income streams from own-portfolio investment properties now held on the balance sheet and believe the landlord operations are primed to deliver significant value creation. Our overhauled model results in a €44 price target (old: €30). After the strong share price performance (+85% YTD), our rating is now Add (old: Buy).