LBG Media PLC (AIM:LBG) received a glowing write-up from Shore Capital Markets after the broker initiated coverage on the Lad Bible publisher this week.
Analysts praised LBG’s transformation from a single Facebook page to “a global digital entertainment business encompassing a portfolio of youth-focused brands and channels with an impressive and growing reach of over 1 billion viewers across multiple platforms”.
“We believe that LBG’s proven ability to connect brands with Gen Z consumers via targeted and purpose-driven content means it is strongly positioned to capitalise on a range of growth drivers,” they added.
Growth drivers for the business include a revival in digital advertising spend, greater engagement with the Gen Z cohort, US market penetration and “the financial firepower to complement organic growth via acquisitions”.
Shore Cap anticipates 62% aggregate earnings-per-share growth over three years, driven by robust cash generation and organic growth opportunities.
Additionally, analysts highlighted LBG’s ambition to grow revenue to £200 million annually through a combination of organic growth and acquisitions.
Shore Cap gave the stock a buy rating with a 159p fair value estimate against the current price of 126.7p.