Codemasters Group Holdings PLC (LON:CDM) has reacted to its recent share price weakness by telling investors that trading has been as expected in its current financial year.
Shares fell by a fifth last week, but the video games developer has moved to reassure shareholders, explaining that its performance has been “in line with its expectations”.
READ: Codemasters launches F1 2018 to rave reviews
Codemasters generated revenue of £35.5mln in the five months to the end of August, including a week’s worth of sales of its hotly-anticipated F1 2018 game.
“The company's financial performance in the year to date, together with the future contribution expected from both existing games and planned game launches in the remainder of the financial year, support the board's full year expectations,” read this morning’s statement.
The news sent shares 3.8% higher to 179p, although that is still some way short of the 215p which they were trading hands for this time last week.
Price fall ‘unjustified’
“Codemasters has booked £35.5mln of revenue or around half of our reaffirmed full-year forecast,” wrote City broker Liberum as it repeated its ‘buy’ recommendation and 310p price target.
“After recent weakness the shares are back on 16x (times earnings), a substantial and unjustified discount to the computer gaming sector.”
It added: “Catalysts over the next 6 months include the positive reception for F1 2018, the launch of an own-IP game expected in Q4 and the wider sector opportunities as major console and technology companies look to partner with AAA developers to launch new gaming platforms."