11 Bit Studios S.A - In our opinion, 11 Bit is a high-conviction case, a rare high quality gaming developer with an exceptional track-record. We have previously described the case in a strongly recommended thorough report available here: slideshare.net/ModelioEquity/…
(2) We continue to reiterate our view on the case with a current fair value range of approx. 1400-1900 PLN per share (approx. 200-300% upside).
(3) The company has a proven and rare track-record platform to continue to build the growth journey. We assess at least one recurring (and increasingly larger) internal releases projects from 2023 and onwards.
(4) The team of 150 will almost double by 2023 to allow this to materialize. Still favourably, little is known about the coming pipeline.
(5) We think the company can at least release 1-4 titles per year a mix between publishing and internal projects, with 1 publishing title during 2021 and gradually increasing to several releases in 2022, 2023 and onwards.
(6) The market does not believe in that this scenario will be realized but rather that the company will have sporadically and at-best mediocre game releases.
(7) We asses that even the worst selling game will be better than market expectations – thus we deem that this is a overly negative approach for the high-impact growth that is set for a perception change.
(8) In the coming months we will most likely know more regarding the ”evolution” of the company's games. We asses that this will likely encompass broadening of the games of 11bit into RPG adventures which we asses that the company will most likely be successful in achieving.
(9) Strong ownership ties with a rare passionate and attractive culture with a proven growth track-record makes the company prone for further value realization.
(10) The downside is protected by the ever-growing and high-quality back-catalog, producing even under considerable investments 100MSEK+ in EBIT (approx. Back-catalog EV/EBIT 23). This is overly pessimistic scenario given that a pipeline exists and the quality of the business.
(11) From 2022 and onwards we deem it most likely that the company can deliver yearly recurring durable EBIT of 300m+.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
