ShoreCap spies 'interesting entry price' into Frontier Developments, upgrades
Analysts at ShoreCap upgraded their recommendation for shares of Frontier Developments from 'hold' to 'buy', telling clients that they were anticipating record sales over the 2023 financial year and a step-change in profitability.
Frontier Developments
199.00p
12:34 24/12/24
2.79%
5.40p
FTSE AIM 100
3,464.93
13:14 24/12/24
n/a
n/a
FTSE AIM 50
3,897.43
13:14 24/12/24
n/a
n/a
FTSE AIM All-Share
717.40
13:14 24/12/24
n/a
n/a
Their new recommendation, they pointed out, also followed a downdraft that had seen the shares drop from about 1,400.0p in November to "just" 960.0p.
To them, that marked a "notable" discount to their favir value estimate of 1,350.0p - which was unchanged - and to its historical metrics " despite a larger profile of titles and an arguably more sophisticated model".
They were also anticipating improving margins and cash generation across their forecasted period which stretched out to FY2025.