Analyst recommendations
Warburg Research
In the reporting period, YOC AG recorded significant sales growth (see table). Sales revenue from international business activities in the first half of the year increased by 14%, while sales revenue in the home market of Germany increased by 31% compared to the same period last year. The increase in the business volume of the YOC Group is partly attributable to new trading functionalities of the VIS.X® technology platform as well as the expansion of product solutions based on artificial intelligence (AI), which have already generated 15% of the sales volume in the course of business in 2024 and demand continues to increase. Since the introduction of VIS.X® AI at the beginning of the third quarter of 2023, YOC has already implemented more than a hundred campaigns and deals. The target variables to be optimized, such as video completion rate (VTR), were increased by an average of at least 20%-30% with the use of VIS.X® AI and, in some cases, significantly higher uplifts in campaign results were achieved. The positive feedback from the market – and the H1/24 numbers delivered - confirms that artificial intelligence opens up significant potential for the further development of YOC’s product range in general. The strategic focus on high-impact ads coupled with an innovative technological infrastructure and the adept use of AI to increase campaign efficiency positions YOC as a unique partner for advertisers to implement high-impact advertising campaigns and an important partner for publishers capable of delivering premium, high-margin formats. Against this background, WRe confirms its expectations for the current year. The rating remains Buy with a price target of EUR 28 (previously EUR 27, roll-over).
Price Target
28.00 EUR
Rating
57.3%
Last Update
20.08.2024
Montega AG
Revenue grew from EUR 12.6m to EUR 15.5m (+23.0% yoy) after the first six months. It should be noted though that the Q1 growth rate had been positively impacted by the revenue contribution of Noste Media Oy, which was only acquired on 21 March 2023. Taking the more relevant comparison between the second quarters in each year, the 14% growth rate is also very good. EBITDA has tripled, up from EUR 0.6m to EUR 1.8m. After a loss (EUR -0.2m) had been reported in the prior-year period due to a special depreciation on a receivable in the amount of EUR 0.4m, YOC now has generated a profit of EUR 0.9m, which is much more than we had expected (MONe: EUR 0.6m). Growth was driven by the expansion of the product portfolio as well as the development and use of AI-based modules for campaign and deal optimization. YOC confirms outlook, we increase our earnings forecast: Based on the good start to the fiscal year and the ongoing positive prospects in video advertising, YOC has confirmed its targets for the fiscal year 2024. Alongside revenue of EUR 36.0–37.0m, the company continues to expect EBITDA of EUR 5.0–6.0m and net profit of EUR 3.5–4.5m. Apart from new trading functionalities of the VIS.X® technology platform, the increasing use of product solutions based on artificial intelligence (AI) will contribute to this. Based on EBITDA of EUR 1.8m achieved by mid-year, YOC only needs to generate EUR 3.7m to meet our existing estimate of EUR 5.5m for the year as a whole. As we expect the earnings improvement to continue and the prior-year EBITDA (H2/2023: EUR 3.8m) to be exceeded, we have adjusted our expectation and now believe EBITDA of EUR 6.1m to be achievable. Conclusion: We have increased our EBITDA estimate again and expect YOC to easily reach the upper end of its targeted corridor and probably even slightly exceed it. We reiterate our buy recommendation with an unchanged price target of EUR 24.00.
Price Target
24.00 EUR
Rating
41%
Last Update
19.08.2024
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