First Berlin Reiterates Buy Rating for Verve Group SE

First Berlin Equity Research has published an update on Verve Group SE, maintaining its "BUY" recommendation. Analyst Ellis Acklin has increased the target price from €4.10 to €4.90, citing the strategic acquisition of Jun Group, a US-based digital media company.

Verve Group SE, recently rebranded, has strengthened its position in the ad software market with this acquisition, focusing on enhancing its demand-side platform. The deal is expected to boost financials, solidify the balance sheet, and provide access to Fortune 500 brands. Additionally, it enhances Verve’s AI capabilities and data resources.

The research update highlights that these benefits more than compensate for the capital increase associated with the purchase. As a result, First Berlin has adjusted its projections to reflect the added value from the acquisition.