Euroxx Securities has set a target price of €7.50 per share for Alter Ego Media, up from €6.50 previously, maintaining an “Overweight” rating and seeing upside potential of around 40% from current trading levels.
The brokerage firm estimates that recent acquisitions and the expansion of the business model are creating a new growth trajectory for the group, which has not yet been fully reflected in the stock’s valuation.
In its updated analysis, Euroxx incorporates into its forecasts the contribution of Alter Ego Media’s recent moves in the publishing and live entertainment sectors, estimating that these specific investments will substantially boost the group’s profitability and scale in the coming years.
The brokerage firm believes that the stock’s recent underperformance, which is linked to broader macroeconomic uncertainty and concerns about the cyclical nature of the advertising market, creates an attractive entry point for investors. As he points out, the market has not yet fully priced in either the contribution of recent acquisitions to earnings or the synergies expected to result from their integration.
At the same time, the brokerage highlights the successful development of the joint streaming platform in which the group participates as a significant potential catalyst, arguing that a successful commercial trajectory could lead to a substantial upgrade of current estimates.
Forecasts for strong profit growth
According to Euroxx’s models, Alter Ego Media is expected to post particularly strong growth in operating profitability during the 2026–2028 period. Specifically, a compound annual growth rate (CAGR) of 24%is projected for EBIT.
In terms of earnings per share (EPS), forecasts indicate an increase to €0.44 in 2026, €0.55 in 2027, and €0.60 in 2028, up from an estimated €0.34 for 2025.
Discount relative to international peers
Another point highlighted by Euroxx concerns the company’s valuation relative to comparable listed peers in the sector. Based on its estimates for 2026, Alter Ego is trading at an EV/EBIT multiple of 7.7x, a level that implies a discount of approximately 42% relative to international peers.
Euroxx values Alter Ego Media by combining the discounted cash flow (DCF) method and the comparative valuation method in an 80%-20% weighting, arriving at a target price of €7.50 per share.
Given that the stock closed at €5.40 on the date of the report, the new target price implies an expected increase of approximately 40%, which justifies maintaining the positive “Overweight” investment recommendation.