First Berlin – publity AG Research Update (10/01/2019)

First Berlin Equity Research has published a research update on publity AG (ISIN: DE0006972508). Analyst Ellis Acklin reiterated his BUY rating and increased the price target from EUR 29.00 to EUR 30.00.

Abstract
publity raised its full year guidance again to wrap up the year. Management now look for revenues and earnings to top 2017 results by 50% to 70% on an annualised basis (old: 20% to 30% above the 2017 level). Thanks to further fees generated from successful acquisitions and disposals, the company is now on track to deliver strong growth after underperforming last year and in H1 2018. We have adjusted our 2018 targets accordingly. The asset manager also announced plans to step into the landlord business next year in order to capture attractive rental income streams. Our DCF-based valuation now results in a fair value of €30 (old: €29). We maintain our Buy rating.