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 2.90 price target.

Abstract
ad pepper media (APM) has acquired a further 18.73% of solute and now owns 44.37% of the company. APM management intends to continue its ongoing discussions with other shareholders in solute with the aim of achieving a majority stake. solute reported very strong 2024 figures with revenue rising 26% y/y to €44.7m, and EBITDA more than doubling from €1.8m to €3.9m. A successful consolidation of solute would transform APM into a much stronger player in the digital advertising business with combined revenue of €66m and EBITDA of €5.9m. APM had standalone revenue of €21.5m and EBITDA of €2.0m in 2024. The company is to issue 2.3m shares valued at €4.5m as consideration for the 18.73% stake in solute. In reworking our model, we have taken the higher number of APM shares, the stronger solute result and APM’s higher stake in solute into account. An updated DCF model yields an unchanged €2.90 price target. We confirm our Buy recommendation.