adesso share deep red: adesso confirms forecast despite a weak start to the year – Warburg lowers price target

The SDAX company announced on Friday evening in Dortmund that the outlook for the rest of the financial year remains positive despite the fact that the development of earnings fell short of expectations. It is to be expected that the sickness rate will return to normal and that capacity utilization will increase. The order backlog is at a record level. On this basis, the original forecast for 2023 of over one billion euros in sales with earnings before interest, taxes, depreciation and amortization (Ebitda) of 100 to 110 million euros is confirmed.

According to preliminary figures, sales in the first quarter increased by 32 percent to EUR 276.2 million. The cyber attack on IT discovered in January did not have a significant impact, it said. The company vigorously accelerated the recruitment of new staff. The operating result (Ebitda) fell by 36 percent to EUR 17.9 million compared to the same period of the previous year, which benefited from higher license sales and other operating income. The significantly higher personnel expenses had a negative impact. The group’s result fell to 2.0 million euros. A year earlier, adesso had earned 12.5 million.

The complete quarterly statement is to be published on May 15th.

Warburg reduces adesseo price target – Continues “buy” rating

The analysis house Warburg Research has lowered the price target for adesso from 200 to 195 euros according to figures for the first quarter, but left the rating at “Buy”. In a study published on Monday, analyst Andreas Wolf wrote that the IT service provider’s profitability was unable to keep up with sales growth in the first quarter. Because of the weak operating result, he has now reduced his earnings estimate and therefore his price target.

On Monday, the adesso share temporarily lost a whopping 8.76 percent to EUR 125.00 via XETRA.

DORTMUND (dpa-AFX) /

HAMBURG (dpa-AFX Broker)

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