Deutsche Bank has upgraded Everplay to Buy, raising its target price from 300p to 330p, saying the gaming group’s steady performance and rising free cash flow forecasts make it a more attractive bet.
The call follows Everplay’s full-year results, which showed 5% revenue growth despite a tough market and underwhelming new releases from its Team17 division.
The real bright spots came from the back catalogue - up 27% year on year - and strong growth at astragon and StoryToys, two of its smaller studios, both of which posted sales growth of more than 20%.
While Deutsche remains cautious on Team17’s prospects, it believes this will be more than offset by ongoing momentum in other parts of the business. As a result, it has lifted its free cash flow forecasts by 9% for both 2025 and 2026.
With a solid pipeline of new titles and reliable earnings from existing games, Everplay’s outlook is improving.
The shares were static at 277.12p.