In a phase of strong value creation

Admicom company update (estimates, recommendation and target price) 22/3/2019, translation published 23/5/2019 15:30

We reiterate Admicom’s reduce recommendation and revise the target price to EUR 35.0 (previously EUR 25.0). Admicom is continuing strong value creation, supported by strong continued growth with an extremely profitable business model as well as strong competitive advantages and market trends. We expect the company’s annual profit growth to reach over 30% in the next couple of years, wherein previous evidence of growth and the business model based on continuing revenue provide visibility. We are now more positive about the company’s market potential and sustainable level of profitability and liquidity, which increases the acceptable valuation level of the share. Even though the current high valuation factors can be justified by strong profit growth, the strong stretching of the valuation has consumed the upside potential of the share over the short-term.