Deutsche Bank has upgraded its rating for Frontier Developments PLC (AIM:FDEV) to 'hold' from 'sell' increasing its price target 100p to 300p.
The change is driven by Frontier's strong performance in the second half of fiscal year 2024.
The company expects full-year revenues of around £89 million, surpassing both the previous guidance of at least £85 million and DB's forecast of £85 million.
The upgrade is attributed to robust sales of the back catalogue, particularly boosted by the release of "Planet Zoo: Console Edition" and successful promotion periods targeting existing games.
Notably, a significant promotional event on Steam for "Planet Coaster" in May contributed to the outperformance.
The shares were down 0.9% at 296.5p.