Next Games: 2020 is about creating foundations for growth - Nordea

Last year was focused on a turnaround for Next Games, as the company cut its cost base, renewed its operating model, and raised new funding.

During 2020, we expect to see the launch of the Stranger Things game, a bulking up of its game pipeline, and new strategic partnerships with global entertainment franchises, thus creating a foundation for future growth. Because of its low cash position, we expect the company to shed more light on its plans to fund the launch of the Stranger Things game in conjunction with its H1 report. We believe this could be done through a co-development arrangement with Netflix or an additional financing round during H2.

We raise our DCF- and multiples-based fair value range to EUR 1.0-1.9 per share (EUR 0.7-1.5 previously).

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