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 4.40 price target.

Third quarter reporting was encouraging considering the macro headwinds faced by digital ad operators. Performance was led by a 39% year-on-year rise in sales helped by 23% organic sales growth (OSG). AEBITDA also climbed 21% Y/Y. Earnings translated into strong operating cash flows, and the leverage ratio edged lower Q/Q to 3.6x (Q2: 3.7x). MGI upped revenue guidance to €315m to €325m (old: €295m to €315m) but left its AEBTIDA target unchanged at €83m to €93m. Management was upbeat in the company’s ability to adapt to changing market conditions, giving us confidence that MGI will emerge from the downturn a winner. We remain Buy-rated on MGI with a €4.4 target price.