Original-Research: Intershop Communications - from Quirin Privatbank Kapitalmarktgeschäft 09.05.2025 / 16:30 CET / CEST Dissemination of a Research, transmitted by EQS News - a service of EQS Group.

Original-Research: Intershop Communications - from Quirin Privatbank
Kapitalmarktgeschäft

09.05.2025 / 16:30 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

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Classification of Quirin Privatbank Kapitalmarktgeschäft to Intershop
Communications

     Company Name:               Intershop Communications
     ISIN:                       DE000A254211

     Reason for the research:    Update
     Recommendation:             Buy
     from:                       09.05.2025
     Target price:               3.20
     Last rating change:
     Analyst:                    Sebastian Droste

Solid start to 2025 with positive EBIT

On 30 April, Intershop released its Q1 financial results and confirmed its
guidance for FY2025. Revenues were weak and declined by 4.0%yoy, however
this was 1.7% ahead of our expectation. The decline reflected an 18.0%yoy
drop in service revenues due to the PartnerFirst shift, partly offset by
5.0%yoy cloud revenue growth and a 14.0%yoy increase in cloud ARR. Gross
margin improvement and strict cost control limited the EBIT decline, with
EBIT margin exceeding our forecast. Management highlighted efficiency
measures, AI enhancements and a larger cloud mix as key to protect
profitability but noted spending restraint and elevated R&D investment as
challenges. They confirmed guidance of -5.0% to -10.0%yoy revenues (in line)
and slightly positive EBIT margin (in line). The investment case rests on
recurring cloud revenue growth, improving margin structure and strategic
shift to partners. We increase our target price to EUR 3.20 and confirm our
Buy recommendation.


You can download the research here: http://www.more-ir.de/d/32544.pdf
For additional information visit our website:
https://research.quirinprivatbank.de/

Contact for questions:
Quirin Privatbank AG
Institutionelles Research
Schillerstraße 20
60313 Frankfurt am Main
research@quirinprivatbank.de
https://research.quirinprivatbank.de/

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2134502 09.05.2025 CET/CEST