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 maintained his EUR 3.00 price target.

ad pepper media (APM) published its 9M report and confirmed preliminary sales and EBITDA. Despite the challenging market environment, the company reported its first positive quarterly EBITDA figure (€101k) of the year. This shows the positive effects of initiated cost savings. For Q4, APM is guiding towards a further decline in revenue y/y and positive EBITDA. As Q4 is the seasonally strongest quarter (online Christmas shopping, Black Friday & Cyber Monday), we expect Q4 EBITDA of €806k. Following the successful acquisition of a 26% stake in solute, we believe that a main share price driver is APM’s plan to raise its stake in solute to >50% and consolidate the company. The deal would more than double APM’s revenue and create a leading listed player in performance marketing and digital marketplaces (price comparison). An updated DCF model, which does not yet factor in the planned solute consolidation, yields an unchanged price target of €3.00. We confirm our Buy recommendation.