Berenberg said the deal, announced on 19 June, boosted the proportion of direct revenues, broadened LBG's client base, enhanced its creative capabilities and improved its value proposition with younger audiences.
The German bank described the acquisition as financially accretive and lifted its earnings per share estimates by 7%, 22% and 21% for FY26–FY28.
Berenberg said the acquisition increases the share of direct revenues to around 83% on a pro‑forma basis, up from 77% in FY26 and 54% in FY25, improving earnings quality and predictability. It added that Uncovered would benefit from LBG's US presence as it scales internationally.
It said the upfront consideration implied an FY26 enterprise value-to-underlying earnings multiple of 6.7x, rising to 8.5x including the earnout, which it viewed as attractive given Uncovered's growth profile.
Berenberg, which reiterated its 'buy' stance on the stock, increased its revenue forecasts by 4%, 17% and 18% for FY26–FY28, and lifted adjusted EBITDA by 8%, 26% and 24%, assuming 50% revenue growth in FY26 and 20% in FY27 with margins held at 26%.
Reporting by Iain Gilbert at Sharecast.com