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CDR: Rising Future Multiple Will Likely Pressure Shares Despite Margin Compression

Rising Costs And Delays Will Undercut Witcher And Cyberpunk Success

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CDR
AnalystLowTarget
Not Invested
Published 03 Jul 2025

Update shared on 17 Dec 2025

Fair value Increased 18%
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AnalystLowTarget's Fair Value
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1Y
28.6%
7D
-4.1%

Analysts have lifted their price target on CD Projekt from approximately $95 to about $112 per share, citing stronger expected revenue growth despite some compression in profit margins and a higher assumed future earnings multiple.

What's in the News

  • CD PROJEKT RED entered its first collaboration with XR brand VITURE to launch a limited-run VITURE × Cyberpunk 2077 5th Anniversary Collector's Edition, integrating the game's Night City aesthetic into next-generation XR glasses (Key Developments).
  • The collector's edition is capped at 10,000 serialized units worldwide, including a special #2077 unit, and is priced at $549 with availability starting December 10, 2025, via VITURE.com and select global retailers (Key Developments).
  • Based on VITURE Luma Pro hardware and SONY MicroOLED panels, the Cyber Edition delivers a 152-inch virtual display at 120 Hz and up to 1,500 nits of brightness, with broad compatibility across major handheld gaming devices (Key Developments).
  • The collaboration introduces VITURE's Immersive 3D Mode, using AI-driven 3D algorithms to add real-time depth to 2D content across Windows, Android, iOS, and Mac, enhancing both gaming and cinematic experiences (Key Developments).

Valuation Changes

  • The Fair Value Estimate has increased from approximately 95 PLN to about 112 PLN per share, reflecting a materially higher intrinsic value assessment.
  • The Discount Rate has edged up slightly from 11.58 percent to 11.60 percent, implying a marginally higher required return on equity.
  • Revenue Growth has been revised up from roughly 46.8 percent to about 50.1 percent, indicating moderately stronger top line expectations.
  • The Net Profit Margin has been reduced significantly from around 41.6 percent to about 22.6 percent, signaling a more conservative view on future profitability.
  • The Future P/E has risen sharply from about 9.9x to roughly 17.9x, suggesting a substantially higher valuation multiple applied to projected earnings.

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