First Berlin Equity Research has published a research update on Media and Games Invest SE (ISIN: MT0000580101). Analyst Ellis Acklin reiterated his BUY rating and maintained his EUR 8.20 price target.
Q1 reporting confirmed preliminary numbers from 25 April. Sales climbed some 27% on an annualised basis to €66m; earnings grew at a stronger clip led by AEBITDA (+30% Y/Y). The performance was spurred by good organic (+18%). The start to 2022 is encouraging considering a spate of Q1 disappointments among the tech and media sectors, and a crash in tech shares. MGI is tracking well towards confirmed guidance after a Q1 outperformance in terms of growth (’22 Guidance: 17% to 25%), and operations are running just fine. Price pressure in the M&A markets has created a buyer’s market, which could open the door to further external growth at favourable valuations. We remain Buy-rated on MGI with an €8.2 target price.