Keywords Studios (KWS)

Sector:

Support

Index:

FTSE AIM 50

1,345.00p
   
  • Change Today:
    -5.00p
  • 52 Week High: 1,838.00
  • 52 Week Low: 900.00
  • Currency: UK Pounds
  • Shares Issued: 65.12m
  • Volume: 6,402
  • Market Cap: £875.83m
  • Beta: 1.33

Berenberg lowers price target on Keywords Studios

By Iain Gilbert

Date: Friday 20 Sep 2019

LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg lowered their price target on technical and creative services firm Keywords Studios from 1,620p to 1,400p on Friday on the back of the group's own reduced forecasts for margins and profits, but argued that the company's "multi-year equity story" was not broken but rather "on pause".
Berenberg had previously argued that the second-half 2019 pre-tax profit margin recovery expected by consensus was "too great" and that management would likely reduce it - a fear that was realised when the group cut its pre-tax profit guidance by roughly 8% in its interim report card on 18 September.

While the move was clearly a negative one, which led the German broker to reduce its target price, Berenberg thinks Keywords' multi-year equity story was "not broken, but paused".

"Organic growth trends remain robust and the company is confident of returning to historical margin levels by FY 2020," said Berenberg, which also reiterated its 'hold' rating on the firm.

"We do not model the margin recovery in full and instead wait for evidence of an improvement, leaving upside to our forecasts and valuation if margins return to historical levels in FY 2020."

Berenberg also expectsd Keywords' growth in outsourcing to outgrow the video game segment at a 7% compound annual growth rate as developers continue to outsource a larger percentage of the development cycle, adding growth over and above that of the underlying market.

"We believe that Keywords' best-in-class end-to-end platform and geographical reach will allow it to capitalise on this growth in outsourced game development, organically win market share and thus outperform the market."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

KWS Market Data

Currency UK Pounds
Share Price 1,345.00p
Change Today -5.00p
% Change -0.37 %
52 Week High 1,838.00
52 Week Low 900.00
Volume 6,402
Shares Issued 65.12m
Market Cap £875.83m
Beta 1.33

KWS Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
99.42% below the market average99.42% below the market average99.42% below the market average99.42% below the market average99.42% below the market average
96.67% below the sector average96.67% below the sector average96.67% below the sector average96.67% below the sector average96.67% below the sector average
Price Trend
0.3% below the market average0.3% below the market average0.3% below the market average0.3% below the market average0.3% below the market average
17.46% below the sector average17.46% below the sector average17.46% below the sector average17.46% below the sector average17.46% below the sector average
Income
95.61% below the market average95.61% below the market average95.61% below the market average95.61% below the market average95.61% below the market average
83.53% below the sector average83.53% below the sector average83.53% below the sector average83.53% below the sector average83.53% below the sector average
Growth
96.52% above the market average96.52% above the market average96.52% above the market average96.52% above the market average96.52% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average

What The Brokers Say

Strong Buy 5
Buy 0
Neutral 2
Sell 0
Strong Sell 2
Total 9
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

KWS Dividends

  Latest Previous
  Interim Final
Ex-Div 03-Oct-19 30-May-19
Paid 25-Oct-19 21-Jun-19
Amount 0.58p 1.08p

Trades for 09-Dec-2019

Time Volume / Share Price
08:40 200 @ 1,345.00p
08:39 131 @ 1,347.00p
08:39 7 @ 1,347.00p
08:39 112 @ 1,350.00p
08:39 2,250 @ 1,350.00p

KWS Key Personnel

CEO Andrew John Day
CFO Jon Hauck

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