Paradox: Hit game to boost long-term revenue - Jefferies

Paradox Interactive AB (publ)

29/09/2020 08:15

** Jefferies ups Paradox  PDXI.ST  to "buy" from "hold" and
raises price target by nearly 60% to SEK 338, citing long-term
revenue benefits from the Swedish game developer's Crusader
Kings 3 release
    ** The brokerage says the game has proven a "massive hit",
with unit sales on Steam alone twice the amount of Jefferies' FY
estimate since its release on Sept. 1
    ** Jefferies adds this is not a one-year effect, as it
expects the larger starting base to deliver several years of
similarly higher revenues from post-launch content
    ** It ups its revenue estimate by 6% for 2020 and by 11% for
2020, and EPS by 32% and 21%, respectively, saying CK3 alone has
filled the gap left by delay of Bloodline 2 into 2021
    ** Jefferies notes the company's 2020 has also been boosted
by its back catalogue during the lockdowns, while in 2021 it
expects a greater impact from new games, such as Bloodline 2


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