A trading update from XLMedia (XLM:AIM) prompts yet another set of upgrades, lifting the shares 10% to 72.4p. This repairs some of the collateral damage from the recent ad-tech crash.

The previous sell-off was sparked by a major profit warning from Adgorithms (ADGO:AIM) on 9 October.

As we recently discussed XLMedia is distinct from the other ad-tech players. It is not really an ad-tech business at all but is instead a performance-based marketing specialist focused on online social gaming and gambling which uses ad-tech tools.

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The company now says it will top market expectations delivering annual revenues of at least $88 million and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of at least $27.5 million representing year-on-year growth of 73% and 62% respectively.

The EBITDA number is more than 15% ahead of the previous consensus forecast.

House broker Liberum retains its 'buy' recommendation and raises its price target from 103p to 111p. The dividend per share forecast moves from 4.0 cents to 4.6 cents.

It comments: ‘The shares are currently undervalued on all metrics. Arguably, as an operator agnostic company in a high growth market, the rating warrants a premium to quoted peers.

'However, even assuming that the shares re-rate towards sector average multiples (EV/EBITDA, EV/Sales, P/E etc.) then an average of the implied value and our discounted cash flow analysis, generates a target share price of 111p.’

Issue Date: 12 Nov 2015