RE: Very bullish comments from Peel today , 670p target19 Oct 2023 19:47
Basically Peel, shore and Zeus all getting more bullish here. This was an excerpt from Zeus which they titled “Road to Recovery”
We are encouraged by Frontier Developments' announcement of an Organisational Review. We believe many video games companies inflated their expense bases during 2020 and 2021 and reduced focus on return on investment. Frontier now plans to reduce annual operating costs by up to 20% by the beginning of FY25. Frontier's Organisational Review returns the business' focus to optimising returns, leading us to forecast a recovery in adjusted EBIT margins to 5.3% in FY25 and 9.4% in FY26. We believe the company is starting on a long path to again be a premium-rated video game vendor. Shares trade at only 4.8x FY26 Adjusted EBIT, which is below the UK peer average of 7.9x 2025.
I’m a short typically but from what I gather there’s a few shorts trying to cover here. Don’t be surprised if a few get a bit angry on this forum ;-)