Keywords Studios PLC (AIM:KWS, OTC:KYYWF) remains a buy with Shore Capital after its trading update confirmed the group continues to perform strongly.
The video game services company now expects full-year 2022 performance to be comfortably ahead of consensus.
As a result, analysts at Shore Capital raised their revenue and adjusted profit before tax (PBT) guidance by 6% to €680mln and 9% to €111mln respectively.
Beyond 2023, the group’s outlook remains positive, with organic growth set to remain above medium-term guidance of 10%, said the broker.
Shore Capital also expects Keyword to continue to invest in the business as previously set out by management.
“Overall, we believe Keywords appears well place to benefit from the favourable structural growth opportunities as demand for bigger and more content-rich games remain.”
Analysts at Peel Hunt echoed similar beliefs, with a buy rating and a target price of 3,000p.
Peel Hunt said Keywords benefited from a strong USD which lead to pre-tax profit margins remaining higher than expected.