Analysts have raised their price target for Modern Times Group MTG from SEK 140 to approximately SEK 156, citing improved profit margin outlook and updated financial assumptions, even though forecasts for revenue growth have moderated.
What's in the News
- Modern Times Group MTG AB initiated a share repurchase program commencing October 10, 2025, with authorization to repurchase up to 10% of its issued share capital, amounting to SEK 400 million. Repurchased shares will be cancelled. The program is valid until May 15, 2026. (Key Developments)
- The company raised its earnings guidance for the full year 2025, now expecting organic growth of 7% to 9% and total reported revenues between SEK 11.4 and SEK 11.7 billion. This represents an improvement from its previous target. (Key Developments)
- Modern Times Group MTG AB announced plans for a new divisional structure, reorganizing its business into two commercial divisions within its Gaming Village: the Midcore District and the Casual District. These will encompass studios such as Plarium, Futureplay, InnoGames, Snowprint, Hutch, and Ninja Kiwi. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target has increased from SEK 140 to approximately SEK 156, reflecting an improved outlook for the company's valuation.
- Discount Rate has risen slightly from 7.59% to 7.88%, suggesting a modest adjustment in the perceived risk profile.
- Revenue Growth expectation has fallen significantly, decreasing from 17.68% to 10.02%. This indicates more moderate growth assumptions moving forward.
- Net Profit Margin is projected to improve, rising from 9.68% to 10.16%, which points to expectations of greater operational efficiency.
- Future P/E ratio has increased from 14.0x to 16.1x. This implies higher valuation multiples for the company's future earnings.
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