Proactive Investors - Frontier Development (LON:FDEV)’s share price recovery continued as analysts hailed the value of its back catalogue as profits from the video game developer beat expectations.
While still in the red underlying loss expectations for the twelve months to 31 May 2024 were cut to £5 million from £9 million with the console edition of Planet Zoo said to be selling well.
Revenues for the year have also been upgraded to £85 million.
Liberum, which previously had forecast a £13 million underlying loss, said that Planet Zoo’s porting to console and a strong publisher sale across Steam in April helped revenues.
“Back catalogue strength and improved cash outlook further reduces uncertainty over future cash flows,” the broker added.
Liberum’s target price rises to 360p following the update and it is now a buyer, from hold, with the potential for further upgrades to its numbers.
Shares rose 17p to 282p.