Morgan Stanley believes the digital business is key to valuing the stock. Downloads in Big Fish continue to be weak and the launch of Toy Story Drop appears to provide little benefit, on the basis of monthly Sensor Tower data.
Meanwhile, Plarium continued to enjoy the benefit of RAID and Product Madness revenue continues to improve sequentially.
Overall, the data shows revenue for all games is tracking growth of 8% year-on-year versus Morgan Stanley’s estimates of 3% for FY19. Overweight. Target is $35. Industry view: Cautious.
Sector: Consumer Services.
Target price is $35.00.Current Price is $29.85. Difference: $5.15 – (brackets indicate current price is over target). If ALL meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).