Kepler initiates games group Paradox with 'buy' on core business potential

Paradox Interactive AB (publ)

15/10/2024 11:51

** Kepler Cheuvreux initiates Swedish video games group
Paradox Interactive  PDXI.ST  with a "buy" rating and a PT of
SEK 220, vs SEK 184.70 at Monday's close
    ** Paradox's planned focus shift to its core business will
be finalised with the launch of Bloodlines II, its last
high-risk project affecting cash flow and profits, in H2 of
2025, Kepler says
    ** It adds Paradox can deliver EBITDA margins above 65%
without significant capital investments, with its Skylines
franchise as the main driver
    ** Skylines should generate the largest profits in 2025 and
has the potential to account for more than 20% of sales in the
coming years, Kepler says
    ** The Paradox shares are up 3.7%
    ** Out of nine analysts covering the stock, five rate it
"strong buy" or "buy", ​three "hold" and one "sell"

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