Team17 Group (TSVNF – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst James Wheatcroft from Jefferies maintained a Buy rating on the stock and has a p360.00 price target.
James Wheatcroft has given his Buy rating due to a combination of factors that highlight Team17 Group’s strong financial performance and strategic initiatives. The company has reported results slightly ahead of market expectations, with revenue and EBITDA both showing positive growth. This is supported by a robust back-catalogue growth and an increase in higher-margin first-party intellectual property, which now constitutes a significant portion of their revenue.
Furthermore, Team17 Group has demonstrated financial strength with an increase in net cash and the introduction of a maiden dividend, signaling a new progressive dividend policy while retaining flexibility for mergers and acquisitions. The company’s focus on higher return on investment first-party IP and a low-investment game development model presents potential upside. Additionally, the appointment of new management and strategic hires, such as a new IP acquisition director, are expected to drive further growth and value creation.