Berenberg reinstates coverage on Team Internet following Verdane's exit
Analysts at Berenberg reinstated coverage on internet services business at 'buy' on Monday, albeit at a reduced target price.
Berenberg stated that it had opted to reinstate coverage on Team Internet after fund manager Verdane's announcement that it did not intend to make a firm offer for the business. This followed TowerBrook's confirmation on 10 January that it also did not intend to make a firm offer.
In conjunction with this announcement, Team Internet provided an update following Google's change to AdSense for Domains, with management now forecasting that FY25 adjusted underlying earnings will be in the range of $60.0m-68.0m, versus prior consensus estimates of $98.0m.
"We reduce our FY25E adjusted EBITDA estimate to $60m, which represents a 39% decline versus our previous estimate. In addition, we reduce our price target to 100p. Shares are trading on 6x FY25E P/E on our revised forecasts," said the German bank, which previously had a 170.0p target price on the stock.
Reporting by Iain Gilbert at Sharecast.com
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