Berenberg hikes target price on Next Fifteen following 'huge contract win'

Analysts at Berenberg hiked their target price on media outfit Next Fifteen Communications from 1,500.0p to 1,600.0p on Wednesday following a "huge contract win" for the firm.

Berenberg said Next Fifteen Communications, which announced that its Mach49 subsidiary had won a five-year innovation consulting contract worth $400.0m over the five fiscal years ending 2027, was now in the midst of "a watershed moment".

As a result, the German bank increased its full-year 2023-25 sales, underlying earnings and earnings per share forecasts by roughly 9-15%, stating the contract win also illustrated the success of Next15's transition to a data and technology-led growth consultant in recent years.

"We believe there is still significant upside to our estimates, from both organic growth and further M&A, and view the shares as materially undervalued on 17x P/E and 6% FCF yield for FY 2023E," said the analysts, who added that they view the 'buy'-rated firm as a top pick.