Embracer (AO) | Buy | A "Very Positive" release

研报英文原文证据摘录

Embracer (AO) | Buy | A "Very Positive" release

Embracer Buy | Target Price: SEK86.00

Company description Management

Embracer is a gaming group active in both development and publishing as well Lars Wingefors, Chairman

as the distribution of PC-, console- and mobile games. Europe and North America Phil Rogers, CEO

are the largest markets. The company has spent several years developing nine Müge Bouillon, CFO

AAA titles that they plan to release during the coming three fiscal years, starting Key shareholders

2026/27. Post a significant restructuring involving disposals and two spin-offs, Free float 72.00%

the company now has a net cash position and the opportunity to generate Lars Wingefors AB 19.72%

meaningful cash flow. Savvy Gaming 7.39% DNB Asset management 6.37%

Investment case Valuation methodology

Looking forward, Embracer aims to release Metro 2039 this fiscal We use a conservative 7x EV/EBITDA less capex 2027/28, a low

year, while Amazon will release the first new Tomb Raider game multiple that reflects the mixed history. This target price implies

in many years, in addition to two medium-sized titles. In c. SEK 86 per share and c. 6.5% cash flow yield for the same year.

2027/28, three larger titles are scheduled, in addition to a A DCF based on an 8% long-term EBITA margin and 8.85% WACC

second, larger Tomb Raider game. suggests SEK 105 per share.

The company is focused on righting many of the previous Risks to our rating

challenges by investing relatively more in its own IPs and less in Postponement/cancellation of key upcoming game releases,

externally developed games based on 3rd party IPs. In addition, resulting in poor ROI and revenue generation.

the company may continue to shed non-core assets. Gaming companies are dealing with the oversupply brought on