Jefferies nudged up its price target for Keywords Studios PLC (LON:KWS), while repeating its ‘buy’ recommendation, saying the next trading statement should confirm double digit growth an “margin improvement”.
The US broker reckons the stock is worth 1,881p, up from 1,853p and 35% ahead of the current price of 1,391p.
“The market will wait to see acquisition spend inflect, but we're confident [Keywords’] opportunity-set and attractiveness has grown,” analyst Ken Rumph said in a note.
The company, valued at more than £900mln, supplies a range of technical services to computer games developers and publishers.
Some of the services it provides include art services, software engineering, audio services, functionality quality assurance (QA), localisation (enabling games to be published in several languages), localisation QA, and player support.
Among its clients are Sega, Nintendo, Google, Microsoft and Warner Bros.
Established in 1998 it now has studios in more than 42 locations in 20 countries across four continents.
Keywords employs a buy-and-build strategy and has been expanding rapidly since its first acquisition in 2014.