'Time to level up' for Azerion, Berenberg starts with 'buy'

Azerion NV

15/11/2022 10:01

** Berenberg initiates coverage of Azerion  AZRN.AS  with
"buy", saying it has scope for double-digit growth over the
medium term and its margin potential is underappreciated
    ** The Dutch group, founded in 2014 and headquartered in
Amsterdam, makes software that automates the purchase and sale
of digital advertising, as well as online games and content
    ** "Time to level up," the brokerage writes in a note, with
the merger of adtech and gaming at scale enabling Azerion "to
create a closed-loop ecosystem rich in first-party data"
    ** Berenberg forecasts 18% and 33% sales and adjusted EBITDA
CAGR respectively in 2022-2025, and expects the company to
outpace the digital ad market
    ** The brokerage says the 14% adj. EBITDA margin it expects
Azerion to reach this year is below what it estimates peers can
deliver, leaving scope for growth of 6 percentage points by 2025
    ** It expects Azerion to keep consolidating the market and,
through the sale of EUR 300 mln ($312.30 mln) worth of treasury
shares, to acquire EUR 40 mln in incremental EBIT between 2023
and 2025
    ** The stock, down around 30% since end-March, is up around
3% in the morning trade
($1 = 0.9606 euros)
 (Reporting by Juliette Portala)
 ((juliette.portala@tr.com))