European Video Games: HSBC sees several long-term catalysts

Stillfront AB (publ)

02/03/2021 13:33

** COVID-19 has focused attention on the video games
industry, HSBC says; expects it will benefit from several
long-term catalysts
    ** Brokerage sees next generation consoles, consolidation
and games as a service likely to drive structural growth in the
sector   
    ** HSBC expects Swedish listed companies to continue their
acquisition strategies; points out the way companies acquire can
vary significantly
    ** Brokerage initiates coverage of Swedish Embracer Group
 EMBRACb.ST  with "buy" rating based on company's agenda to
pursue M&A and its decentralised business model
    ** HSBC starts coverage of Swedish Stillfront  SFRG.ST  with
"reduce" as upcoming IDFA (Identifier for Advertisers) changes
on operating system iOS 14 will result in slower revenue growth
for company  
    ** It initiates Polish CD Projekt  CDR.WA  with "hold" due
to mixed reception of Cyberpunk 2077 game, and cites strategy
update expected in Q1 as next catalyst
    ** Brokerage reiterates its "buy" on French Ubisoft
 UBIP.PA  on medium-term catalysts of a licensed Star Wars game
and a free to play (F2P) title in collaboration with Tencent
 0700.HK  (Q1 2022)


 ((marta.frackowiak@thomsonreuters.com))