Kepler Cheuvreux believes that the spin-off of Coffee Stain, with its first trading day scheduled for December 11, justifies a premium relative to Embracer thanks to stronger cash flow and less volatile results. The target price is raised to 124 kronor (previously 122), while the buy recommendation is maintained.
According to analysts, Coffee Stain is valued at 28 kronor per share, which means the remaining Embracer – set to be renamed Fellowship – is trading at approximately seven times EBIT, a level considered too low given its positive cash flow and a net cash position of 2.9 billion kronor.
The value of Fellowship is estimated at 96 kronor per share, above the current level, including the entitlement to Coffee Stain.
The forecast for adjusted EBIT for 2026–2027 is raised by 150 million kronor, mainly due to completed divestments and strong quarterly launches.
