LONDON (ShareCast) - (Sharecast News) - Analysts at Canaccord Genuity lowered their rating on video games developer Team17 from 'buy' to 'hold' on Thursday, stating the group's share price was now approaching its target.
Canaccord said Team17's interim trading update earlier in the week stated that the group had traded in line with management's expectations during the first half of 2021 and entered the second in "great shape".

As a result, Canaccord made no changes to its full-year estimates for adjusted underlying earnings and earnings per share, which were around 5-7% ahead of consensus, and added that it does not expect consensus to change either, at this stage.

The Canadian bank also noted that its estimates appeared to be roughly 12% higher than consensus, but it pointed out that the consensus "was quoted mostly after amortisation of acquired intangibles".

"We follow normal conventions and exclude this acquired amortisation from our estimates; as a result, we forecast adj. EBIT of £33.4m which compares to consensus adj. EBIT of around £31.5m if we adjust consensus to a CG basis (i.e. pre acquired intangible amortisation)," said Canaccord, which reiterated its 850.0p target price on the stock.

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