LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg raised their target price on video games company Keyword Studios from 1,600.0p to 1,700.0p on Monday, stating the group had reinforced its "leading position" by means of its recent fundraiser.
Berenberg praised Keywords Studios for "shrewdly" raising €115m of equity on 14 May to accelerate mergers and acquisitions while smaller competitors were struggling amid the Covid-19 pandemic and were, therefore, more willing to engage at attractive valuations.

"If deployed over the next 18 months, it could add €19m or c33% to our pro-forma FY 2021 EBIT estimate," stated Berenberg.

In addition, the German bank highlighted that Keywords' trading for the first four months of 2020 was ahead of expectations and noted that capacity was coming back online "sooner than expected".

"Coupled with Keywords noting that demand for its services has grown throughout the pandemic, particularly as competitors struggle, suggests to us that the company will come out the other side of Covid-19 stronger than it was," said the analysts.

Berenberg also reiterated its 'buy' rating on the group.

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