Berenberg raises target price on Codemasters

(Sharecast News) - Analysts at Berenberg raised their target price on video games developer Codemasters from 340.0p to 400.0p on Wednesday, stating the group had added "an extra gear" as a result of a new multi-year licence deal.
Berenberg highlighted Codemasters newly signed multi-year licence deal with the FIA World Rally Championship as why it views it as a "solid, but underappreciated" video games company.

The German bank stated the agreement added a further licensed franchise to Codemasters' "rapidly expanding" content pool, supported its medium-term earnings growth and poised the company for a valuation rerating.

"In our view, Codemasters' increasing revenue diversification, potential to benefit from the shifts towards digital sales and continuing high levels of execution are undeserving of its 20% discount to peers," said the analysts.

In addition to upping its target price on Codemasters, Berenberg also reiterated its 'buy' rating on the firm's stock.