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| Augsburg (aktiencheck.de AG) - Cosmin Filker and Philipp Leipold, analysts of GBC AG, continue to rate the shares of syzygy (ISIN DE0005104806/ WKN 510480) as "buy". |
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| Development of syzygy’s third quarter of 2011 was in line with the analysts’ expectations. While the group achieved international growth, the economy-induced weakness - notably in Great Britain, which is syzygy AG’s most important international market - is still visible. In addition, intense competition in the advertising sector in the UK renders price wars more dramatic. |
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| The development of Hi-ReS! New York is a positive. After a start-up phase of several months, the subsidiary reached break-even for the first time in the third quarter of 2011. In the future, this region should contribute positively to the group’s sales and profits. Meanwhile, Germany continues to see a solid economic development, which has a positive effect on the German online-advertising segment. |
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| The analysts reckon that the future business development of both of syzygy AG’s operative units should profit from an expected increase in online-advertising budgets. However, the current fiscal year 2011 will be affected by the mentioned special items in the context of developing a new corporate identity and the start-up of the international associate in the USA. |
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| Consequently, the analysts retain their estimates for slight sales growth and declining profits in 2011. Mainly due to expected new contract closures in Germany, the analysts project the return of double-digit sales growth rates and more than proportionate profit growth. |
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| The market environment in the UK is expected to have bottomed-out in 2011. Thus growth impulses are expected to come from that region as well. Overall, the cessation of extraordinary charges will play an important role and lead to profit-margin expansion in 2012. |
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| The analysts of GBC AG confirm their price target of EUR 4.80 on the shares of syzygy and also reiterate their "buy" rating on the back of a strong upside potential of 47.2%. (Analysis of November 8, 2011) (08.11.2011/ac/a/d)
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