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Research

Remedy: We keep our eye on the long game

By Atte RiikolaAnalyst
Remedy Entertainment
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We reiterate our Accumulate recommendation for Remedy and raise our target price to EUR 50.0 (previously EUR 38.0) after the H2 report again strengthened our confidence in the company's long-term value creation potential. Thanks to a multi-project model that has been built with controlled risks and is well-managed, Remedy’s preconditions for developing successful games are good. In addition, favorable market trends help the company grow into a clearly larger game house than currently over this decade. Due to a growth story that progresses strongly we still play the long game with the share, even though the valuation looks tight in the short term.

Remedy Entertainment is a game developer. Its operations are primarily focused on the development of action games, with a particular focus on 3D technology. Examples of games that the company has developed include several different versions of Alan Wake, Max Payne, and Control. Remedy also develops its own game engine and tooling technology that powers many of its games. The company was founded in 1995 and is headquartered in Espoo, Finland.

Read more on company page

Key Estimate Figures2021-02-14

202021e22e
Revenue41.145.948.8
growth-%29.8 %11.7 %6.3 %
EBIT (adj.)13.215.514.8
EBIT-% (adj.)32.2 %33.8 %30.3 %
EPS (adj.)0.861.020.97
Dividend0.150.200.25
Dividend %0.4 %1.3 %1.6 %
P/E (adj.)45.515.015.7
EV/EBITDA31.59.59.0

Forum discussions

There are unlikely to be any significant announcement events after this until the late spring/early summer events. In my view, the probability...
10 hours ago
by Relaaja
3
As an interesting exercise, one could consider whether there would be a positive impact on the share price if we hear tonight or during these...
10 hours ago
by Teletappi
2
Tilt.fi – 11 Feb 26 Tulevia pleikkarijulkaisuja esittelevä State of Play -lähetys torstaina –... Sonyn State of Play -lähetys pidetään torstaina...
11 hours ago
by Umpi
3
I don’t see it as a significant problem, as the team at Rockstar that approves milestones is likely a separate team from those working on GTA...
yesterday
by Spwni
5
I imagine that by the time MPR starts nearing completion, people will naturally transition over to the “Alan Wake 3” project, which will surely...
yesterday
8
Mäki noted that Rockstar’s focus is entirely on GTA. Do you see it as problematic from Remedy’s perspective (resources being tied up, etc.) ...
yesterday
by MH_99
1
I watched the interview and Remedy’s webcast. When asked about the schedule and the status of Resonant, Mäki is quick to smile. According to...
yesterday
by Umpi
9
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