Invest Securities confirms its buy recommendation on Nacon shares, with a price target lowered from 3.8 euros to 3 euros.

The delays in Test Drive, Rugby 24 and Tie Break mean that Q4 sales (+10%) are disappointing and cast doubt on the outlook for 2024/25. This has led us to significantly reduce our 2023/24-25/26th estimates", says the analyst.

Nevertheless, Invest believes that the stock remains undervalued (like the sector as a whole), and that it is of speculative interest due to its catalog of games.

The only way to revalue the stock is to overhaul its strategy (streamlining costs and refocusing the line-up) or to buy it back. Let's hope that management will realize this and present a more realistic and de-risked roadmap on June 3", concludes the analyst's office.


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