Paradox: Berenberg cuts to "sell" on 2020 risks

Paradox Interactive AB (publ)

04/02/2020 11:41

** Berenberg downgrades Paradox's  PDXI.ST  stock to "sell"
from "hold", quoting poor earnings delivery on the part of the
Swedish PC game developer
    ** The brokerage reduces its Q4 sales and EBIT forecasts for
Paradox, pointing towards a tough comparable period and the lack
of major releases from the company during the quarter
    ** Berenberg also sees risks to FY 2020 sales, with
competition from CD Projekt's  CDR.WA  CyberPunk 2077, and the
next generation consoles from Sony and Microsoft being heavily
marketed in H2 2020 as prime risk factors
    ** The brokerage sees a FY 2020 margin rebound as
"unlikely", its FY 2020 EBIT estimate being 17% below consensus
    ** Cuts its price target from SEK 125 to SEK 115

 ((Jakub.Lubinski@thomsonreuters.com))