Keywords Studios PLC (LON:KWS) “will come out the other side of [coronavirus] stronger than it was” according to analysts at Berenberg, who on Monday hiked their target price for the firm to 1,700p from 1,600p and retained their buy rating.
In a note, the bank said it now expected sales for the video game services firm to grow 9% year-on-year in 2021, adding that the companys £100mln fundraising last week was “a shrewd move to accelerate market consolidation at, very likely, favourable valuations”.
WATCH: Keywords Studios in strong position to continue acquisition strategy following £100mln raise[hhmc]
As a result, Berenberg said they expected Keywords to deploy the £100mln over the next 18 months, forecasting that the acquisition strategy will add around €19mln to their 2021 earnings (EBIT) estimate.
The broker also highlighted that the firm said it was “past the trough” and, with capacity improving, they Read More – Source