Bank of America's Shocking Valuation of CD Projekt
The listing of CD Projekt, Poland's largest video game developer, has fallen below $23 per share. On Thursday, the market saw a new recommendation from Bank of America, setting the price at 2017 levels.
Source: Pixabay/@PIX1861
Bad things are happening at CD Projekt. The biggest Polish video game developer's stock is plummeting on the stock market charts. The stock price of the creators of The Witcher and Cyberpunk 2077 is falling for the third session in a row, below the PLN 100 barrier, which is the lowest level since January 2018.
No near-term outlooks
As reported by PAP, citing Bloomberg, seeing what is currently happening with the Polish company, Bank of America analysts have decided to lower the target price of CD Projekt shares to just PLN 55 ($12). This is the lowest level since 2017 (red line on the chart presented below).
Source: Trading View
This is because American experts say that the market is too optimistic in assessing the success of the announced expansion for CD Projekt's games in 2023, and new titles may not be released until 2026 at best.
Domestic market also skeptical
Interestingly, in May Polish Bank Ochrony Srodowiska Brokerage House - also skeptical about the prospects for rapid growth of interest in the Polish developer's games downgraded its recommendation for CD Projekt to "sell", and cut the target price by 46% to PLN 90 ($21) per share.. The last time the developer's rating was at double-digit levels was exactly on March 7, 2018.
Finally, it is also worth noting that CD Projekt is currently the second worst-rated company in the Stoxx600 index among those that have lived to see at least two recommendations. The studio has received as many as 23 of them, with only one positive, six neutral, and sixteen negative (via Comparic [in Polish]).
