Rovio: A slightly more conservative view on the outlook - Nordea
Rovio's performance has exceeded our expectations for three consecutive quarters, and the recent CMD also suggested the company’s focus and execution have improved. However, sequentially lower Games revenue signals a somewhat soft Q2 report. Additionally, market normalisation following a period of abnormally high demand and the limited operational leverage indicated by the company's updated long-term financial targets prompt us to cut estimates for 2022-24. We identify the launch of Hunter Assassin 2 (which we model for Q3 2022) and signs of revenue recovery for AB Journey in Q3 as the next potential catalysts for the share. Marketing material commissioned by Rovio.
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