2024-02-06 14:30:31 ET
Summary
- Embracer Group AB (publ) has a strong lineup of entertainment products including PC/console games, mobile, tabletop and also Middle Earth Enterprises.
- Our concerns arise from the failure of Payday 3, which had a terrible launch and is not performing well. It's a reminder that trust can be ruined in a moment.
- The company's valuation offers a margin of safety, but earnings could be negatively impacted if new releases and the back catalog do not perform on the higher end of expectations.
- The company is also undergoing a restructuring, whose success is uncertain.
- While some major segments like Tabletop are performing well, standards need to be higher in PC/console, and the fatigue in the industry is becoming increasingly documented.
Embracer Group AB (publ) ( THQQF ) has a historic lineup of video game franchises across PC, console, and mobile gaming. Moreover, Middle Earth in the IP stable, at least Middle Earth with some conditions , not including Rings of Power and similar projects since it goes over 8 episodes, is an extraordinary find at Embracer's highly compressed multiple and almost all-time low prices....
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Embracer Group: Payday 3 Game Seriously Underperforms On Player Counts