First Berlin Equity Research has published a research update on ad pepper media International N.V. (ISIN: NL0000238145). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and increased the price target from EUR 3.60 to EUR 4.00.

2022 was a difficult year for ad pepper (APM), but given strong preliminary Q4/22 figures, we now believe that 2023 will be much better than previously expected. In Q4, APM’s revenue amounted to €7.2m, was only marginally lower than in the prior year quarter, and exceeded our forecast by more than €1m. Given the company’s high operating leverage, Q4 EBITDA was ca. €1m above our forecast and as much as 24% better than the prior year figure of €0.8m. Following the 10% revenue decline and the EBITDA slump (-71% y/y) in 2022, we now believe that ad pepper is back on the growth track and increase our 2023 forecasts. An updated DCF model yields a new price target of €4.00 (previously: €3.60). We confirm our Buy rating.