Dagens Industri recommends buying Asmodee, sees 30 percent upside - Stock of the Week
Dagens Industri issues a buy recommendation for the board game company Asmodee under the Stock of the Week banner.
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The newspaper notes that Asmodee under Embracer was not a success, but that this is mainly due to the price tag. The business itself is ticking along, and last year Asmodee recorded both revenue and operating profit at record levels.
According to Di, there are several reasons to like Asmodee's business model. It is a capital-light business whose successful games have a long lifespan and can be turned into various products. In addition, Asmodee has a strong position that enables good partnerships such as with Lego. Finally, the company is a takeover candidate. Here, Di points to the second-largest owner, Saudi Savvy Gaming, as a potential acquirer, together with a private equity firm.
"Major shareholder Lars Wingefors would in that case likely also be sufficiently unprestigious to say yes, and instead perhaps keep a large number of shares in the bought-out, unlisted Asmodee," writes Di.
The target price is set at SEK 150, which corresponds to an upside of 30 percent from current levels.
