Coverage Initiation

First Berlin Equity Research on 25/04/2016 initiated coverage on German Startups Group Berlin GmbH & Co. KGaA (ISIN: DE000A1MMEV4/ Bloomberg: GSJ GR). Analyst Christian Orquera placed a BUY rating on the stock, with a EUR 4.20 price target.

Abstract:
The primary focus of German Startups is the acquisition of minority holdings in high growth potential start-ups within the IT and Internet sectors in the German-speaking market. Despite GSG's brief 3.5 year history, the company has rapidly built up a high quality portfolio and become the second most active venture capital provider in Germany. The company currently has 23 minority holdings of particular significance including some of the most successful German start-ups such as Delivery Hero, Mister Spex and SoundCloud. The highly diversified portfolio has delivered an impressive return on investment close to 30% p.a. since 2012. Additionally, GSG has been profitable since its first year of operations due to consistent portfolio appreciation, based on third party valuations of its holdings (IFRS). We expect GSG to significantly increase portfolio value and profitability over the next few years, as its holdings gain in critical mass and traction. We initiate coverage of GSG with a Buy recommendation and a price target of €4.20.

This is an abbreviated summary. For the full text of this story contact Gaurav Tiwari directly.

First Berlin Equity Research GmbH
Mr Gaurav Tiwari
Tel.: +49 (0)30 809 39 686
web: www.firstberlin.com
E-Mail: [email protected]

Authored by: Christian Orquera, Analyst

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