First Berlin Equity Research has published a research update on Verve Group SE (ISIN: SE0018538068). Analyst Ellis Acklin reiterated his BUY rating and decreased the price target from EUR 4.50 to EUR 4.00.

Abstract
June quarter reporting was within shooting distance of FBe, but messaging for H2 has become more cautious. LFL revenue rose 6.5% YoY to €152m, while AEBITDA edged 2% higher to €30m despite continued drag from expansion related costs. However, 3.5% organic growth undershot management expectations as advertisers postponed spend and existing customers scaled budgets more slowly than anticipated. This contrasts with Q1 commentary that chalked up softer market conditions to seasonality. Encouragingly, gross margin reached 40% vs 33% last year, while Q3 trading has improved and the FY26 guide remains intact. Still, the H2 hurdle has risen and guidance no longer looks conservative from our standpoint. We have therefore shifted our forecasts towards the lower end of the range (€680m to €730m) and now regard the midpoint as more of an upside case. Our recalibrated forecasts lower the TP to €4.0 (old: €4.5) equal to 269% upside. We maintain our Buy rating.