Amerbrokers issues a buy recommendation. Target price PLN 30.102011-08-30

In their August 19 report, Amerbrokers analysts set the City Interactive target price at PLN 30.10 and issued a buy recommendation.

On the day of the report, City Interactive shares were trading at PLN 22.

“Our valuation puts the target share price for City Interactive S.A. at PLN 30.10, a 36.8% premium over the current price. We are issuing a buy recommendation for the company in connection with this,” Amerbrokers states in its report.

According to the authors, City Interactive’s improving financial results and market valuation in the months to come will be driven by Sniper sales figures and new product releases.

“Based on the presented release plans for 2012, our forecast for the next several years is conservative. We did not take into account any potential acquisitions by the company,” the analysts wrote.

The Warsaw-based video game developer and publisher is expecting the release of Combat Wings – a World War II air combat game – to take place this September. The game is to be available on all 4 platforms.

“On the other hand, the company’s 2012 results should be fuelled by Sniper 2 and a game currently known by its working title “WWII”, which is set during the Second World War. Sniper 2 will most likely be released in 1Q 2012, whereas WWII should appear in stores next summer. We expect Sniper 2 to match the success of its predecessor, with overall sales in 2012 to reach 1.5 million copies,” the report states.
 
At around 5:00pm Monday City Interactive shares were trading at PLN 23.

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