Barclays starts Paradox at 'underweight' on risk of game delays

Paradox Interactive AB (publ)

06/06/2024 09:46

** Barclays initiates Paradox Interactive  PDXI.ST  with an
"underweight" rating and a PT of SEK 130, citing a risk of
delays in the Swedish game developer's two large projects
    ** With release dates for "Bloodlines 2" and "Life by You"
still uncertain, the broker says delays from FY24 to FY25 are
likely, which could cause more share price turbulence
    ** It notes Paradox shares, trading at SEK 147.5, have lost
half their value since mid-2023, partly due to disappointing
game releases and delays
    ** Consensus does not yet account for the full picture of
delays, it adds
    ** However, it sees potential for "decent" revenue growth in
the medium and long term
    ** Out of six analysts covering Paradox, three rate the
stock "strong buy" or "buy", two "hold" and one "sell"

 (Reporting by Anna Chaberska)
 ((Anna.chaberska@thomsonreuters.com))