Frontier Developments [LON:FDEV], the Cambridge-based video game developer will release its full-year financial results for the 12-months to end-May on Wednesday (11th September). The Armchair Trader has been covering FDEV for a number of years and just like one of the developer’s biggest titles, PlanetCoaster, FDEV has been through a lot of peaks and troughs over the last two years.
However, Frontier Developments seemed to be getting back on track after: “financial performance across the Foundry portfolio [FDEV’s third-party platform] ha[d] been disappointing, and overall, the business ha[d] not delivered Frontier’s expectations of a positive return on investment within the first year of each title.” Frontier closed the platform last year.
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Since then, the share price has been on a bit of a recovery. It opened the week (9th September) at 240.41p, up 79.4% year-to-date. The company’s shares have ranged between 95p and 345p over a 52-week period. Frontier has a market capitalisation of GBP94.75m.
Berenberg upgrades to buy
The turnaround in the share price was well-received by the City. Analyst Berenberg upgraded the developer’s rating from ‘Hold’ to ‘Buy’ with a target price of 330p. They argued that Frontier Developments pipeline, including Planet Coaster II and a Jurassic World title for Financial Year 2026 had now de-risked the equity story, with both franchises having a strong following and being bankers in the past.
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