First Berlin – publity AG Research Update (15/03/2019)

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

Preliminary 2018 results showed strong annualised revenue and earnings growth. According to German GAAP (HGB) reporting, revenues are expected to top €34.6m vs €23.6m in 2017 (+47%) with net income of some €15m (FY17: €10.1m, +49%). The company will report full year numbers according to IFRS accounting standards for the first time and indicated net income of €25m on this basis. Headline figures were largely in line with our estimates. The good performance owes to recurring revenue streams from its asset management mandates. The results represent a strong finish to the year after H1 2018 undershot expectations. Our rating remains Buy with a €30 price target.