Original-Research: Intershop Communications (von Quirin Privatbank Kapitalmar...

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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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