Kepler Cheuvreux is less worried about game developer Enad Global 7 missing its full-year guidance after signing a deal to include the only major game released in 2024, Mechwarrior 5: Clans, in Xbox Gamepass and PC. This is what emerges from an analysis.
In light of this agreement, the research firm raised its forecasts by 10% for the current year and revised them downwards for 2025-2026.
“It is reasonable to assume that Q4 sales and profits will be higher due to Gamepass, at the expense of 2025-26, as EG7 is paid up front at the expense of lower unit sales,” writes Kepler, whose new forecasts are now just 4% lower than EG7’s full-year forecast.
Compared to the ebitda target for 2026, however, it is 40 percent lower than the company’s forecast.
“Part of the reason for this gap is that the goal includes the launch of the H1Z1 game, which had not started production as of August and is therefore at clear risk of not being completed on time,” Kepler writes.
The “hold” recommendation is reiterated, as is the target price of 14 SEK.
EG7 will publish its next interim report on November 12.
Related News :