First Berlin Equity Research Issues Buy Rating for Ad Pepper Media International N.V.

First Berlin Equity Research GmbH has published a research update on Ad Pepper Media International N.V. with a reiterated Buy rating. Analyst Dr. Karsten von Blumenthal confirmed the price target of EUR 2.90.

Ad Pepper Media (APM) released its H1 report, showing final revenue and EBITDA figures consistent with preliminary numbers. Despite a slight decrease in Q2 revenue (€5.2 million, down 3% y/y), management successfully turned the net result around, posting €113k compared to a loss of €450k in Q2/23, thanks to significant cost reductions. The focus now is on acquiring new clients to boost revenue and take advantage of the business model's high operating leverage.

As usual, Q4 will be crucial for annual performance. Lower European central bank rates are expected to enhance consumer confidence, potentially leading to higher spending and increased advertising budgets among APM's clients. With H1 EBITDA at €707k, meeting the 2024 EBITDA target of €1.8 million seems attainable. The updated DCF model supports the unchanged price target of €2.90, reinforcing the Buy recommendation.