Trigon Brokerage House has published new equity research on GAMIVO. Its analysts point to the lower operating costs, cash generation in the last quarter, and the fact that a possible recession may positively impact the company. As a result, Trigon has recommended buying GAMIVO shares.
Trigon published its new report on July 21. The analysts have recommended buying GAMIVO stakes and set the target price at PLN 90 per share. They also indicated that although the video game market is losing momentum due to the lack of notable releases and problems concerning the hardware chain of supplies, a possible recession might not necessarily have any disturbing effect on GAMIVO.
“It seems that the risk of a recession may harm short-term financial performance. On the other hand, there is a scenario that a potential recession could have a slightly positive effect on the company as customers may be more likely to buy video games at the lowest price,” the report reads.
The equity research forecasts that the lowering of GAMIVO’s operating costs will continue to have a positive impact in the future months. It’s worth remembering that in Q1, GAMIVO generated PLN 10.2 million in revenue and PLN 1.6 million in net profit. Moreover, in June, the Warsaw Stock Exchange included GAMIVO in the NC Focus segment.
Trigon’s equity research on GAMIVO can be found here.
