Verve Group SE: Market Scepticism Despite BUY Rating

First Berlin Equity Research has released an update on Verve Group SE, maintaining a BUY recommendation but reducing the price target from €5.10 to €4.50. Analyst Ellis Acklin attributes this to a slow ramp-up of the Supply Side Platform business following platform unifications, which impacted Q3 results negatively on a year-on-year basis.

Management had previously warned about the challenges in the September quarter. Despite two consecutive underwhelming quarters, they remain optimistic, confirming the 2025 guidance with adjustments for IFRS 15 revenue recognition. The company suggests that the recent downturn is temporary and sees potential for recovery by Q4.

While management maintains a positive outlook, market scepticism persists as investors await Q4 results to affirm a return to growth. The previous mid-year slump is viewed as a minor disruption in the company's upward trajectory.