Analyst James Wheatcroft from Jefferies maintained a Buy rating on Team17 Group and keeping the price target at p360.00.
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James Wheatcroft has given his Buy rating due to a combination of factors that indicate a promising outlook for Team17 Group. The company has guided towards a better-than-expected financial outcome for FY25, with results anticipated to slightly exceed current market expectations. This positive guidance is particularly notable given the typical second-half weighting in the industry. Wheatcroft expects consensus EBITDA estimates to increase by 3-5% for FY25, bolstered by recent acquisitions.
Additionally, the company’s new game releases are performing well, and its back catalogue remains strong. Team17 Group has been active in acquiring intellectual property and publishing rights, which is expected to enhance their return on investment. Despite a recent strong performance in share price, the company trades at a lower EV/EBITDA multiple compared to its historical average, suggesting potential for further growth. These factors, combined with the company’s net cash position and potential for accretive mergers and acquisitions, support Wheatcroft’s positive stance and Buy rating.
According to TipRanks, Wheatcroft is a 4-star analyst with an average return of 10.0% and a 54.61% success rate. Wheatcroft covers the Consumer Cyclical sector, focusing on stocks such as Inchcape, SSP Group plc, and Entain plc.