Shore Capital has placed its 'buy' rating for video game company tinyBuild Inc under review following a disappointing first-half trading update that sparked a 50% slump in the share price.
The broker anticipates material revisions to its revenue and adjusted EBITDA forecasts for FY23 and FY24, citing reduced contributions from distribution platforms and underperformance from recently acquired Versus Evil and Red Cerberus.
TinyBuild now plans to review its portfolio and development pipeline to assess future revenue potential, alongside a strategic reorganisation of its studios and assets. The review is expected to be completed by March 2024, Shore said.
In early afternoon trade, the stock was changing hands for 15p, down 19.5p, or 56%.