Trigon Brokerage House has published new equity research on several companies. GAMIVO was one of the businesses at which analysts took a closer look. Not only do they still recommend buying GAMIVO shares, but they have also raised the target price.
In July, the Trigon Brokerage House analysts published an equity research report in which they recommended buying GAMIVO shares. On October 24, they posted an update that took into consideration GAMIVO’s financial results for the second quarter of 2022. This period proved that the company’s activities aimed at increasing profitability have been exceptionally effective. As a result, GAMIVO reported a turnover of PLN 56.3 million, revenues of PLN 10.7 million, and a net profit of PLN 2.9 million.
All those numbers have significantly increased compared to the second quarter of 2021 and the first quarter of 2022. It’s worth highlighting that GAMIVO achieved such good results despite the lack of major AAA releases that usually boost video game sales. As a result, in October’s equity research, Trigon Brokerage House maintained its buy rating. Moreover, the analysts raised the target price on GAMIVO from PLN 90 to PLN 128.
“We appreciate the improvement of the company’s results at the level of EBITDA and positive cash flow,” the report reads.
Furthermore, the experts believe that the slowdown of the video game industry and the concerns about the global recession might drive GAMIVO’s growth.
“We assume that the possible slowdown of the video game industry could have a positive effect on the company as customers may be more likely to buy video games at the lowest price (substitution effect),” the analysts indicate.
It’s worth mentioning that GAMIVO hasn’t been exclusively working on improving its profitability in the recent month. The company has also launched some new features, such as geotargeting. This functionality has been vital during the GAMIVO cooperations with the Gaminate company and renowned video game developers Plarium and Wargaming.
It’s worth mentioning that GAMIVO hasn’t been exclusively working on improving its profitability in recent months. The company has also launched some new features. For instance, geotargeting that has been vital to the company’s new marketing activities, including partnerships with Gaminate or renowned video game developers Plarium and Wargaming.
