Keywords Studios PLC (AIM:KWS, OTC:KYYWF) is in a good position to exploit current uncertainty in the video games market, according to Deutsche Bank Numis.
Starting coverage on the video game ancillaries specialist with a ‘buy rating’, DBN said Keywords had become the global leader in the video game outsourcing market via a successful M&A strategy alongside impressive organic growth and solid cash generation.
“Results for 2023 demonstrated a robust performance against a challenging backdrop, underscoring the value of Keywords' offering, with strong progress against key strategic pillars.
“The near-term disruption in the video game space may be a source of uncertainty, but we see an opportunity for Keywords to exit this period in an even stronger position, more embedded with clients.”
DBN’s target price of 2,470p is almost double the current market level of 1,259p.