Everplay Group has been handed a hefty price target upgrade by Jefferies, which reckons two blockbuster game launches have plenty more in the tank.
The broker cranked up its target to 540p from 380p, sticking with a "buy" call and dangling better than 20% upside from the current 438.5p. The shares have already rocketed 70% in the past month, but Jefferies thinks there is further to run.
Everplay, the publisher formerly known as Team17 that bankrolls indie developers behind cult hits like Worms and Overcooked, has struck gold with its latest two releases.
Hell Let Loose: Vietnam and, in particular, Wardogs have been flying off the virtual shelves. Wardogs has shifted around 2.5 million copies on Steam since launching on 10 September, up from roughly 1 million at the interims. Together the pair have racked up an estimated £65 million of revenue so far.
That prompted Jefferies to lift its earnings forecasts by about 10% out to 2028, and analysts James Wheatcroft and Matthew Copeland suspect they are being cautious.
Their numbers only count sales banked to date, ignoring the small matter of Black Friday and Christmas. Every extra 500,000 Wardogs sold, they note, adds about £3 million to profits.
Even after the rally, the shares trade on 10 times forecast earnings, shy of the mid-teens Everplay has historically commanded.
