Digital Bros S.p.A.: Promising Growth with Strategic Cost Reductions and Anticipated Success of ‘Wuchang’

TP ICAP MIDCAP analyst Charles Louis Planade maintained a Buy rating on Digital Bros S.p.A. (DB7 – Research Report) yesterday and set a price target of €21.00.

Charles Louis Planade has given his Buy rating due to a combination of factors that highlight Digital Bros S.p.A.’s promising future. A key element in this assessment is the anticipated success of their upcoming game, Wuchang, which is expected to generate significant revenue upon its release. The game has garnered substantial attention, ranking among the top three worldwide for games with a confirmed release date, suggesting a strong market reception.
Additionally, Digital Bros S.p.A. has undertaken strategic cost reductions, including a 30% reduction in headcount, which could enhance operating leverage and profitability. The company’s valuation appears attractive, especially when considering the potential revenue from Wuchang, which could match the entire group’s expected revenue. These factors collectively support the Buy rating, as they indicate a strong growth trajectory and improved financial performance for the company.

DB7’s price has also changed dramatically for the past six months – from EUR9.470 to EUR14.100, which is a 48.89% increase.