March 2020

CLIQ Digital AG: Warburg Research raises price target to EUR 6.10 with buy recommendation

  • 19/03/2020

– Warburg Research analyst Felix Ellmann sees no negative effects of coronavirus on CLIQ Digital AG

– In the current environment, the increasing demand for digital entertainment services opens up additional marketing opportunities for CLIQ Digital

– “Massive increase in earnings expected in 2020, combined with a quite high visibility”

 

Dusseldorf, March 19, 2020 – The shares of CLIQ Digital AG (ISIN DE000A0HHJR3, GSIN A0HHJR), a leading direct marketing and sales organization for digital products with its own global payment and distribution platform, have been revalued by Warburg Research AG in a recent research update. Analyst Felix Ellmann has raised the price target to EUR 6.10 (previously: EUR 5.40) and continues to issue a “buy” recommendation: “While most companies are negatively affected by the corona virus, CLIQ Digital could be one of the few exceptions and even benefit. This is particularly interesting as the share has also suffered considerable price losses in the context of weak markets”.

“In times of crisis, companies like CLIQ will benefit”

It has been shown in the past that even in times of recession there was a demand for entertainment and people still “went to the movies”. Since it is one of the peculiarities of a pandemic that such public entertainment offerings are no longer appropriate or possible, this could, in Ellmann’s opinion, represent an opportunity for CLIQ. Especially since it is to be expected that customers will consume more digital content since their area of life is increasingly sealed off and at the same time their willingness to pay for digital entertainments services is likely to grow.

“In the context of recessive tendencies, the purchase of online advertising could also become cheaper. This is the significant cost factor. If other digital advertisers would reduce their online media budgets this could lead to an increase in available media placements at a lower price, contributing to further growth and profitability of CLIQ Digital,” says Warburg analyst Ellmann.

Warburg Analyst Ellman continues: “The company has one of the very few business models that is likely to show a massive increase in earnings in 2020 combined with quite high visibility.”

The current commentary by Warburg Research can be found on the CLIQ Digital AG website under the following link:
/wp-content/uploads/2020/03/Cliq_Digital_Comment_20200313_en.pdf

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