CentralNic Group PLC (AIM:CNIC)’s results got the thumbs up from Berenberg today which sees potential for the group’s share price to double.
Quarter three results were in line but the broker pointed out the company has upgraded its organic EBITDA and EPS forecasts by c40% year to date and has clearly proven its ability to grow organically and via acquisitions.
For the nine months, CentralNic reported revenue of $526.7mln, up 88% and gross profit of $128.3mln, up 53%. driven by a doubling of organic revenues in the online marketing segment and by a steady 4.3% organic constant currency growth in the online presence segment.
CentralNic’s revenue per thousand sessions year to date of $104 is"testament to the ROI it delivers for advertisers using contextual advertising."
“In our view, this level of performance and execution for a stock trading at c8x P/E indicates that there will be a re-rating over the next six to eight months once the market becomes risk-on again” Berenberg said.
The broker has a buy rating and 250p price target.
Shares in CentralNic were trading a touch lower today, down 0.55p at 126.30p.