LBG Media PLC (AIM:LBG) is backed by 'positive tailwinds', according to Berenberg, which raised its price target by 20p to 140p a share for the digital publisher focusing on the young adult demographic.
Repeating its 'buy' advice, the investment bank noted that the audience to which LGB caters is one of the most elusive for advertisers.
Yet the company grew its viewer base by 23% to 452 million. No wonder then that blue-chip brands such as Nike, Disney and Diageo are gravitating towards its sites including LADbible, UNILAD, GAMINGbible, SPORTbible and Tyla.
As one of Facebook's biggest publishers, LBG's fortunes are to some extent tied to those of the Meta-owned social platform. According to Berenberg, the trickle-down positive impact of improving Facebook ad pricing is likely to boost LBG's top line - providing the tailwind mentioned in the intro.
"Management has outlined an ambition to reach £200 million of revenue, which it has a 'clear line of sight' to," said the German bank in a note to clients.
"There is no timeline for delivery, but it did comment that it will achieve this target through a combination of organic and inorganic growth.
"While the lack of a timeline is unhelpful, we think this is a positive sign in terms of outlining management.
Berenberg expects sales of £84.5 million this year, generating EBITDA of £23.2 million.
In afternoon trading, the stock was up just under 6% at 112.23p.