Berenberg nudges up target price on Team Internet Group

Analysts at Berenberg slightly raised their target price on global internet business Team Internet Group on Monday after the group's full-year results came in "marginally ahead" of numbers provided at the time of its trading update on 29 January.

Berenberg noted that full-year gross revenues were $836.9m, with net revenues of $191.1m and organic growth of 13%. The company's online marketing division grew gross revenues by 14.3% to $657.1m, while the online presence unit saw revenues improve by 17.1% to $179.8m, both on a reported basis.

"These results are 7% ahead of our forecasts for gross sales and 6% ahead for adjusted EBITDA," said Berenberg.

The German bank added that in terms of 2024 outlook, management was confident it will meet current market expectations.

"We update our FY 2023 forecasts to reflect the results and make minimal changes to FY 2024/FY 2025E forecasts," said Berenberg. "We increase our price target to 185p as we roll forward our DCF. The shares are trading on an undemanding 8.2x FY 2024 P/E and a 14% FCF yield."

Reporting by Iain Gilbert at Sharecast.com