Research firm Redeye cuts its fair value for gaming company Enad Global 7, EG7, to SEK 29 per share from the previous SEK 32 following a weaker-than-expected quarterly report. This is stated in a research update.
EG7 reported revenue of SEK 496 million and adjusted EBITDA of SEK 126 million in the third quarter, compared with Redeye’s expectations of SEK 553 million and SEK 160 million, respectively.
The deviation is mainly explained by weak sales of Aliens: Fireteam Elite 2, which also weighed on earnings through an impairment charge of SEK 362 million.
Redeye cuts its EBITDA forecasts by 17 percent for this year, 11 percent for 2027 and 7 percent for 2028. At the same time, the research firm highlights strong performance for Big Blue Bubble, Fireshine and EverQuest Legends.
The company’s more predictable revenues increased organically by 11 percent and now account for 71 percent of revenue.
Despite the forecast cuts, Redeye considers the stock undervalued. The new fair value implies upside of around 80 percent compared with the share price of SEK 16.10.
