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 decreased the price target from EUR 8.20 to EUR 4.40.

We are reducing 2023 FBe and raising our WACC estimate by 160 bps to 9.7% to account for increasing market headwinds. Market watchers are reducing global ad-spend expectations for 2023, and the tech sector is experiencing cyclicality. We have thus cut our topline growth target for 2023 to 8% (old: 20%) but expect cost saving measures to compensate for the more conservative outlook and allow MGI to sustain its ~27% AEBITDA margin. We continue to believe MGI has the right business in the right market and that this is a merely cyclical slowdown. Adjustments to our DCF model result in a €4.4 target price (old: €8.2). Our rating remains Buy.