Motorsport Games down after Q4 revenue miss

Motorsport Games

31/03/2022 13:07

** Game developer's shares  MSGM.O  down 16% at $1.73 in
premarket trading
    ** MSGM on Wednesday reported Q4 revenue of $8.22 mln, below
estimates of $13.74 mln, according to Refinitiv data
 urn:newsml:reuters.com:*:nGNX8YsY3G
    ** Brokerage Benchmark cuts rating on stock to "hold" from
"buy"
    ** Says MSGM delivered disappointing Q4 results as "NASCAR
21: Ignition" failed to meet sales expectations and game quality
suffered
    ** Brokerage lowers its FY22-FY23 growth expectations,
citing concerns over future game development and demand, as well
as impact of Russian invasion of Ukraine on game development
    ** D.A. Davidson cuts rating to "neutral" from "buy" and
lowers PT to $2 from $15
    ** "We advise investors look at other names in gaming for
the time being, given the lack of meaningful catalysts over the
next two-three quarters" - D.A. Davidson
    ** Avg. rating of 4 analysts is "hold"; median PT is $10 -
Refinitiv data
    ** As of last close, stock had fallen ~39% this year

    

 (Reporting by Tiyashi Datta in Bengaluru)
 ((tiyashi.datta@thomsonreuters.com))