Interactive Entertainment: Game not over yet - Jefferies

Paradox Interactive AB (publ)

25/06/2020 08:07

** According to Jefferies the game is not over yet for the
interactive entertainment sector
    ** The brokerage says sector absolute gains year to date go
far beyond what any short term lockdown bump could justify, and
adds it expects also long term benefits from lockdown and
COVID-19
    ** It expects larger total addressable market, with new,
returned and renewed gamers swelling revenues, and acceleration
towards mostly digital distribution
    ** Jefferies forecasts Q2 to continue to show strong
trading, given that 'peak lockdown' was March/April and lingers
into July
    ** However, it adds there are some reasons to be cautious
and notes so far consensus estimates beyond 2020 haven't moved
up significantly
    ** The brokerage cuts Paradox Interactive  PDXI.ST  to
"hold" from "buy" after 29% year to date gains and valuation,
adding 2021 seems a "new game lull" 
    ** It keeps "buy" on Ubisoft  UBIP.PA , Frontier
Developments  FDEV.L  and Codemasters  CDM.L  and "hold" on CD
Projekt  CDR.WA 

 ((joanna.wodzicka@tr.com))