Latest News

Keywords Studios story has lot further to run says broker


Keywords Studios PLC (LON:KWS) has received another big share price target upgrade to £32.50 after a bullish trading update this morning.

The video game ancillary services provider upped revenues and adjusted pre-tax profit forecasts for the year to end-December to €373mln and €55mln respectively.

Liberum said the upgrade followed a strong finish to the last few weeks of the year, driven by client demand and a flurry of December M&A.

“Looking ahead, the impact of Covid leaves the business in an even better position; new consoles and streaming will create additional work for the next two years, their clients are cash-rich, and there are more gamers than ever all craving their next helping of new content.

“Add in a pipeline of M&A, and the KWS equity story has a lot further to run. We have updated our forecasts and increased our Target Price to £32.50.”

Keywords has always been an acquisitive business and it has made seven acquisitions at a cost of €92mln since fundraising in May.

That has strengthened the “breadth and depth” of its value-added services. it said, and with net cash at the end of the year of around €100mln more deals are likely.

Andrew Day, chief executive, said: “The group has delivered another robust performance, delivering good organic growth despite the obvious challenges of COVID-19 across our global operations.

“This is testament to the dedication of our talented Keywordians, who have continued to provide our clients with the excellent service they have come to expect, despite these challenging circumstances.”

For the year to December 2021, Liberum sees revenues rising to €466mln and profits to just shy of €70mln.

Shares today rose 1.3% to 2,738p.

Joules posts defensive interim performance; chief financial officer leaves for virtual healthcare co

Previous article

Tirupati enhances its high-end graphene capabilities with technological advances and the appointment

Next article

You may also like


Leave a reply

Your email address will not be published.

More in Latest News