Keywords Studios (LON:KWS) has been upgraded by house broker finncap after its upbeat trading statement last month.
Profits at the computer games services group should be 8% higher than previously expected in 2015 at €7.8mln, while sales will be 1% better at €57.5mln, said the broker. Numbers for 2016 have been left unchanged for now, it added.
Keywords’ traditional business is the translating of video games into local languages, but newer service lines such as customer support and art creation are also making good contributions.
Higher gross margins are the driver for the upgrade reflecting particularly strong organic and acquired growth.
Finncap adds that the proceeds of November’s fundraise have also yet to be used, meaning that estimated year-end net cash is very healthy at €17.2mln.
“Given the potential for the deployment of cash, we leave our target price unchanged at 245p,” Finncap said.