Ad Pepper Media Increases Stake in Solute, Boosts Market Position

Ad Pepper Media International N.V., listed under ISIN: NL0000238145, has strengthened its position in the AdTech sector by acquiring an additional 14.5% stake in solute. This acquisition, costing €3.5 million in cash, increases Ad Pepper's ownership in solute to 59%. The consolidation of solute is expected to occur in the second quarter of 2025, transforming Ad Pepper into a more robust AdTech entity.

This development enhances Ad Pepper's financial outlook, with projected 2024 revenues of €66 million and an EBITDA of €5.9 million. As a result, First Berlin Equity Research's analyst, Dr. Karsten von Blumenthal, has upgraded the company’s price target from €2.90 to €4.10 while maintaining a "Buy" recommendation.

The updated valuation of Ad Pepper is based on a revised DCF analysis that includes solute's financials, indicating a 40% upside potential. This strategic move is anticipated to attract positive investor sentiment due to its focus on increased revenue and earnings within the AdTech market.