SIGNUM-RESEARCH GMBH
Artnet AG Research update Analysis result BUY
SIGNUM-RESEARCH GMBH / Miscellaneous Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. ---------------------------------------------------------------------- Anal Analysis result BUY - Current price target EUR 12.50 In the first quarter of 2008, artnet posted growth of 29% in its three existing divisions on a US dollar basis. Translated into euros, the growth rate fell to 13%, though adjusted for currency effects it still managed to top 25%. This has prompted us to revise our 2008 forecast for revenue growth in the existing divisions measured in euros to 17%. On the whole, the artnet online auctions got off to a promising start, with the first auctions concluding in March. Revenues were generated from the outset—EUR 17 thousand in March—and artnet expects them to remain on an upward curve. Initial adjustments to the empirical data collected have already been integrated into the auction process. We are sticking to our revenue projection of EUR 323 thousand for 2008 in spite of the exchange rate movements. While it is impossible to make a clear forecast on the basis of this data, current data has made the negative scenario of a failure much less likely. The proper launch of the full version with an advertising campaign—once the auction process in the beta version has ended—could thus give a further boost to the artnet online auctions. Costs are continuing to develop at a high level in an attempt to intensify new product development and press ahead with the establishment of existing products on the market as well as their enhancement. This is being impeded by the subprime crisis and the struggling US economy, which are putting a certain damper on revenue growth. So far, however, these factors have not had a significant impact on the art market. We have consequently lowered our forecast for revenue growth excludingauctions from 25% to 23% for 2009 and raised it from 20% to 23% for 2010. We no longer anticipate major negative currency effects after Q4/2008. Summing up, Q1/2008 was characterized by the promising kick-off of the online auctions, the accelerated development of new products, a huge negative currency effect, and a slowdown of growth to 29% on a dollar basis. Following 2008, which was a transition year, we are now conducting our valuation on the basis of 2009 and feel that a P/E ratio of 20 or a share price of EUR 12.60 is at least reasonable. Our DCF model indicates a present value of EUR 12.49. This results in a current fair assessment of EUR 12.50, compared with EUR 11.25 in our initial study. Analyst: Marcus Sühling (business administration graduate) Date of publication: May 26, 2008 Editorial deadline: May 19, 2008 Legal note The legal note as well as publications according to §34b WpHG and FinAnV regarding the companies analysed in this report are publicated at the internet adress www.signum-research.com / Disclaimer. The legal note is part of this financial analysis and should certainly be taken into account when making decisions based on this analysis or initiated by it. Copy right This analysis including all of its parts is protected by copyright. Any use outside the boundaries of the copyright act is not permitted without our written permission, and may be penalized. This applies in particular to duplications, translations, microfilming, storage and processing in electronic media for the entire contents or parts thereof. SIGNUM RESEARCH GmbH Postfach 11 07 13 40507 Düsseldorf GERMANY www.Signum-Research.com 09.06.2008 Financial News transmitted by DGAP ----------------------------------------------------------------------
Aktuelle News
Aktuelle Berichte
Keine Berichte gefunden
Anstehende Events
Keine Events gefunden
Webcasts
Keine Webcasts gefunden