Peel Hunt has reaffirmed its 'buy' recommendation for shares in LBG Media PLC (AIM:LBG), the digital publisher and owner of LADbible and Betches Media in the US.
It has done so with a price target of 150p and highlighted the company’s strong growth trajectory compared with its current valuation, making a compelling case for investors to take notice.
Earlier, LBG reported a 22% increase in revenues for the year ending September 2024, reaching £86 million.
Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew by 16% to £25 million, though margins fell slightly to 28% due to growth investments.
Revenue exceeded forecasts by 5%, with Direct sales up 39%, while Indirect rose 6%, driven by strong Web advertising. Social revenue, impacted by changes to Facebook’s commercial model, has since stabilised, Peel Hunt noted.
The company’s guidance for 10% revenue growth for the current year matched the broker's expectations.
LBG's shares trade at 15 times FY25 estimated earnings. Peel Hunt considers this attractive, given the company’s performance and prospects.
Peel Hunt’s analysis suggests LBG Media is well-positioned for continued growth, despite some short-term headwinds.
In afternoon trading, the stock was flat at 124.8p.