Embracer up 6%; Kepler hikes PT on Coffee Stain spin-off

Asmodee AB

16/09/2025 11:57

** Shares in Swedish video game group Embracer EMBRACb.ST are up around 6% to the top of Europe-wide STOXX 600 .STOXX index

** A Redeye analyst Hjalmar Ahlberg points to a Kepler Cheuvreux update on the stock, which reiterated its "buy" rating and hiked PT by 16% to SEK 116

** Kepler cites the upcoming spin-off of Coffee Stain, which it expects to trade at a higher multiple than Embracer, given its high margins, strong communities, and upcoming major game launches

** The brokerage notes that the situation is similar to what happened last year with the successful Asmodee ASMDEEb.ST spin-off, which created substantial shareholder value

** Potential share buybacks could support the stock post-spin-off, with nine planned AAA titles, also acting as future catalysts for the group, Kepler adds

** Edward James from Cantor notes that Embracer is a volatile stock, and flags recent reports on its Kingdom Come: Deliverance II game DLC selling well and talk of Dead Island 3 being in production

 (Reporting by Vera Dvorakova)

 ((vera.dvorakova@thomsonreuters.com))