Codemasters starts FY with 'particularly strong' trading
British videogame developer Codemasters said on Tuesday that trading since the start of the year had been "particularly strong".
Codemasters now anticipates that both revenues and adjusted underlying earnings will be "significantly ahead" of current market expectations.
The AIM-listed firm highlighted that its revised expectations were driven by the strong performance of its annual Formula One title, F1 2020, and the continued strength of its growing back catalogue of games.
Codemasters added that Fast & Furious Crossroads, which was released on 7 August, had also performed as anticipated so far and said the board was pleased to report that levels of pre-orders from both retailers and consumers for launches scheduled for the remainder of the year also remained consistent with original expectations.
Analysts at Liberum raised their target price on the group from 390.0p to 435.0p following the update, highlighting the "materially better than expected" performance of its Formula One title.
"The shares are closing the valuation gap on the rest of the sector but today's update highlights management's successful expansion of the major F1 franchise, which can underpin further upside," said Liberum.
As of 0945 BST, Codemasters shares were up 6.10% at 400.0p.