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.

ad pepper media (APM) has published its Q1 report. Final figures matched preliminary numbers. Q1/24 revenue climbed 2% y/y to €5.18m. This is the first quarter since Q3/21 in which APM has increased revenue y/y. The slight revenue increase and cost savings led to an EBITDA swing of €549k to €221k. Lower D&A yielded the first positive Q1 EBIT (€8k) since Q1/21. Thanks to net financial income of €57k, EBT amounted to €65k. Guidance in the Q1 report sounds much more positive compared to wording in the annual report of April. APM now expects growth – especially in the Webgains segment. In April, management noted that client caution on marketing spend will likely persist and saw only initial indications for an improvement in clients‘ appetite for booking campaigns. We stick to our forecasts, but now see greater probability of a positive earnings surprise. An updated DCF model yields an unchanged €2.90 price target. We confirm our Buy rating.