Pareto Securities has reiterated its buy recommendation for gaming company Embracer, maintaining strong conviction in the group's long-term outlook and naming the stock as one of its top picks within the TMT (technology, media, and telecom) sector. This is outlined in a recent analysis.
While Pareto acknowledges that Embracer's short-term pipeline appears weak, the firm anticipates several new game announcements over the next 12 months. These upcoming releases are expected to "help reduce risk and support the share price."
Taking the pipeline into account, Pareto believes consensus forecasts are excessively conservative regarding adjusted operating profit for PC/Console segments in the fiscal years 2026/27 and 2027/28. Pareto's estimates are 19 percent and 9 percent above consensus for those respective periods.
The target price remains unchanged at 140 kronor.
