Pareto and Kepler Cheuvreux have released updated commentary on gaming company Embracer after this morning's news that it will launch two new Tomb Raider games in partnership with Amazon Game Studios.
Pareto is maintaining its buy rating and target price of SEK 140. The research firm notes that while Amazon, which is financing the project, is set to reap the largest financial rewards, Fellowship Entertainment (Embracer) will still generate significant revenue through royalties from day one, as well as a revenue-sharing component once Amazon has recouped its investment.
"It is important to emphasize that neither of these games is included in the nine AAA titles the company has previously communicated. We see risks diminishing following the announcement and expect a positive reaction in the share price today. We also believe the next Metro game (AAA) will be announced soon, which is likely to be the most financially significant launch in the 2026/2027 fiscal year," the firm states.
Kepler Cheuvreux is also reiterating its buy rating, with a target price of SEK 124. The analysts estimate a potential boost of SEK 250-300 million, depending on sales assumptions and the likelihood of a couple of major expansion packs being added.
"Before the Coffee Stain spin-off, we valued the remaining Embracer at SEK 94 per share, prior to the presentation of the two new titles. The outlook is strengthened by an expected strong finish to the fiscal year's fourth quarter (January-March) and a marked increase in the number of launches from 2026-2027 through 2028-2029. We see the launch schedule as a clear driver of the company's value over the coming years," Kepler writes.
