(Sharecast News) - Analysts at Berenberg raised their target price on shares of British video games group Frontier Developments to 1,600p from 1,350p on Friday, saying the company appears to be nearing an inflection point.
Berenberg made the move after a "strong" trading update from Frontier on 15 November, with its Planet Zoo title selling more units on PC on day one than any of its previous titles.
While the group's full-year 2020 guidance was unchanged, the German bank said that given the strength of Planet Zoo sales and audience engagement, Frontier's current guidance now looks "conservative" and there is over 27% upside to 2020 group pre-tax profit estimates.
In addition, Berenberg highlighted the fact that Frontier also announced material updates for its Planet Coaster and Elite Dangerous titles in 2021 and confirmed three major IP releases for 2022.
"These support our view that Frontier's game pipeline is nearing an inflection point, and we increase our FY 2022 EBIT estimate by 14% as a result," it said, reiterating its 'buy' rating.
At 1050 GMT, Frontier shares were down 0.3% at 1,198.10p.
Frontier Dev (FDEV)9 May 2024 21:59
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