Frontier Developments (FDEV)

Sector:

Leisure Products

Index:

FTSE AIM All-Share

138.60p
   
  • Change Today:
      2.40p
  • 52 Week High: 631.00
  • 52 Week Low: 107.00
  • Currency: UK Pounds
  • Shares Issued: 39.48m
  • Volume: 27,158
  • Market Cap: £54.72m
  • RiskGrade: 195

Numis cuts Frontier Developments to 'sell', sees risk of capital raise

By Alexander Bueso

Date: Wednesday 11 Jan 2023

LONDON (ShareCast) - (Sharecast News) - Analysts at Numis axed their target price for shares of Frontier Developments from 1,450.0p to 375.0p and downgraded their shares to 'sell', pointing to an assortment of potential headwinds bearing down on the game software developer and its ability to hit its own guidance.
Cited among the above were underperformance across the company's portfolio in December, "issues maintaining momentum" for its F1 game, mixed reviews for the F1 franchise and the possibility of softer consumer spend going forwards.

Thus, Frontier's sales were seen slipping from £100m to £98m in fiscal year 2024 followed by 13% growth in fiscal year 2025 on the back of two major releases.

Furthermore, spending on research and development was expected to result in a FY24 operating loss of £2.4m.

That compared to management's guidance for margins on an earnings before interest and tax basis in the low single digits.

All told, the analysts were anticipating a need to raise capita over the next 18 months.

"However, considering recent issues with execution of new releases, an ageing back catalogue and uncertainty over reception to future F1 games, we see risk to the downside of revised guidance.

"Although future developments may improve confidence in the outlook, based on the group's current position we see a negative risk-reward profile."



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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

FDEV Market Data

Currency UK Pounds
Share Price 138.60p
Change Today 2.40p
% Change 1.76 %
52 Week High 631.00
52 Week Low 107.00
Volume 27,158
Shares Issued 39.48m
Market Cap £54.72m
RiskGrade 195

FDEV Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
20.16% above the market average20.16% above the market average20.16% above the market average20.16% above the market average20.16% above the market average
45.45% above the sector average45.45% above the sector average45.45% above the sector average45.45% above the sector average45.45% above the sector average
Price Trend
90.74% below the market average90.74% below the market average90.74% below the market average90.74% below the market average90.74% below the market average
83.33% below the sector average83.33% below the sector average83.33% below the sector average83.33% below the sector average83.33% below the sector average
Income Not Available
Growth
83.12% above the market average83.12% above the market average83.12% above the market average83.12% above the market average83.12% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average

What The Brokers Say

Strong Buy 0
Buy 2
Neutral 7
Sell 1
Strong Sell 0
Total 10
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

FDEV Dividends

No dividends found

Trades for 28-Mar-2024

Time Volume / Share Price
10:24 5,000 @ 136.75p
10:22 971 @ 138.60p
10:17 86 @ 135.80p
10:17 192 @ 135.80p
10:15 151 @ 135.40p

FDEV Key Personnel

CEO Jonathan (Jonny) Francis Watts
CFO Alex Bevis

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