Jefferies starts Embracer with 'hold' as sentiment still low

Verve Media SE

26/07/2023 12:08

** Jefferies initiates on Embracer  EMBRACb.ST  with a
"hold" rating, citing high revenue diversity but low visibility
of the Tomb Raider game company
    ** Embracer share price plunged 40% in May after a
significant partnership had fallen through and since then
investor sentiment has remained low, Jefferies says
    ** Since the recent pricing downturn in Embracer, the broker
sees the risk of a further de-rating of the stock to be small as
the current negative market sentiment has now been priced in
    ** Earlier on Wednesday, HSBC cut Embracer to "hold" from
"buy"
    ** Jefferies also downgrades Rovio  ROVIO.HE  to "hold" from
"buy", raising target price to EUR 9.25 from EUR 8.40
    ** The broker sees a limited downside risk for the Finnish
game developer and expects the takeover by Sega Sammy Holdings
 6460.T  to be completed in 3Q23
    ** The broker upgrades Frontier Developments  FDEV.L  to
"buy" from "hold" and reiterates "buy" on Keywords Studios
 KWS.L  and CD Projekt  CDR.WA 
    ** It also keeps "hold" on Team 17  TM17.L  while
downgrading MGI  M8G.ST  to "hold" and keeps "underperform" on
Ubisoft  UBIP.PA 
    ** Jefferies continues to believe the recent sector
de-rating from a FY+1 EV/EBITDA range of 8-30x to 12x offers a
favourable risk-reward skew

 (Reporting by Elviira Luoma)
 ((Elviira.luoma@thomsonreuters.com))