EU Mobile gaming: Stillfront "has the winning model" - Berenberg starts with "buy"

Paradox Interactive AB (publ)

14/05/2020 07:46

** Berenberg says that among mobile video games makers it
prefers companies that have a diversified game portfolio, use
M&A to add proven IP to their portfolios and aid audience
diversification and have a relentless focus on live services
    ** The broker says that Sweden's Stillfront  SFRG.ST 
epitomises the above characteristics -- starts the stock with
"buy" and a SEK 855 target price
    ** Amongst pan-European mid-cap video game stocks, the
broker says its top picks are Embracer  EMBRACb.ST , Stillfront,
Team17  TM17.L  and Frontier Developments  FDEV.L , all rated
"buy"
    ** The brokerage says its least preferred names are Paradox
Interactive  PDXI.ST  and Rovio Entertainment  ROVIO.HE 
    ** It starts Rovio at "hold", citing a poor track record of
new games launches and stagnating growth
    ** The broker adds that COVID-19's "stay at home" effect
continues to be a material tailwind for industry -- mobile game
app downloads have increased by an average of 31% across Europe
since lockdowns were put in place
    ** Still, it expects mobile publishers to benefit least,
while on the other hand it sees little impact on their future
games releases


    
     

 ((marta.frackowiak@thomsonreuters.com))