Media and Games Invest SE Receives Updated Research and Price Target from First Berlin Equity Research

Media and Games Invest SE (MGI) has been reaffirmed as a 'Buy' by First Berlin Equity Research, with its price target increased from €3.60 to €3.80, as of April 9, 2024. Analyst Ellis Acklin announced the revised valuation following MGI's strategic move to partner with Google Cloud. This collaboration aims at consolidating MGI's marketplaces into a single cloud platform, significantly boosting operational agility and realizing considerable cost savings.

The partnership entails leveraging Google Cloud's technology to streamline MGI's cloud infrastructure, expected to enhance the development process and efficiency across its product offerings. Notably, the migration process is in progress, with a completion target set for 2025. Moreover, MGI plans to utilize Google Cloud's AI capabilities to expedite the development and launch phases of its AI-driven products, such as Moments.AI and ATOM, without increasing employee numbers significantly. The anticipated cost savings from this strategic initiative amount to €20 million, which has been factored into First Berlin Equity Research's updated discounted cash flow (DCF) model, resulting in the raised price target.

This development positions MGI favorably for improved operational efficiency in the medium to long term, supporting the buy rating from First Berlin Equity Research.