The CD Projekt price plunges for the second day in a row after investors were disappointed with the strategy update. He is also not helped by a deep valuation cut by one of the global banks.
- CD Projekt’s quotations for the first time in more than two years fell below the ceiling of PLN 190
- According to analysts, the updated strategy is disappointing because it is “vague”
- Credit Suisse analysts lowered the target price for the company’s shares by more than 60 percent, to just PLN 155
- You can find more such stories on the Onet.pl homepage
They drop sharply on Wednesday’s session CD Project quotations. In the afternoon, the company’s shares declined by about 14 percent, going down for the first time in more than two years below the ceiling of PLN 190. Investors did not like the strategy update presented the day before by CD Projekt, and they also accepted it without enthusiasm announcement of the acquisition of the Canadian game development studio.
Investors disappointed with the update of CD Projekt’s strategy
According to analysts, it also turned out to be a disappointment. As admitted by Kacper Koproń from Trigona DM, the strategy should be assessed negatively. According to him, it is not specified in time, nor does it refer to future game plans for the coming years.
It is strong in our opinion vague and shows only a short-term product perspectivewhich should be a disappointment for the market. There is no paid addition to “Cyberpunk 2077” this year, there are no announcements about the creation of an online version as a separate product, or a reference to the number of projects in the long term to the assumptions of the incentive program
– assessed the specialist in the morning commentary.
The mood in the CD Projekt stock market turned 180 degrees in just 48 hours. Yet on Monday, while awaiting the update of the strategy, investors increased the company’s share price by 13 percent. However, it may still be a long way to a hard bottom for the company’s shares. As we warned in the analysis from a month ago, “the chart of the relation of the company’s price to the WIG index permanently broke from the bottom of the channel formation, and it is very likely that it means the definitive end of the long-term boom”.
Credit Suisse cuts the target price for CD Projekt by over 60%.
According to the analysts surveyed by PAP Biznes, the key points of CD Projekt’s strategy are the announcement of the parallel production of two games from 2022 and a more gradual approach to the multiplayer mode of “Cyberpunk 2077”. Experts praise the cautious approach of the management, but point out that there was a lack of information that would change the current perception of the company.
March 31st was a major blow to the holders of CD Projekt shares Credit Suisse analyst report. Swiss bank specialists have lowered their recommendation for a computer games producer from “neutral” to “below the market”. At the same time lowered the target price of the company’s shares from PLN 400 to PLN 155, i.e. … by 61 percent.
Analysts said that the change in the recommendation and the target price is the result of a more cautious assessment of Cyberpunk’s sales potential. Credit Suisse lowered expectations for the sale of this game in 2021 to 8.6 million from 16 million.
–
