In a trading update for the year ended 31 December, the AIM-listed maker of Worms and Overcooked said its portfolio had “continued to perform well” over the peak Christmas season, with its multiplayer titles sees particularly strong sales on Nintendo’s Switch console.
As a result, Team17 said it now expects its adjusted earnings (EBITDA) and revenue for the year to be “ahead of market expectations”.
The company added that it is also developing a portfolio of new original game launches for 2020 that will be higher than any previous year, including titles such as Golf with Your Friends, Neon Abyss and The Survivalists.
Additional titles are also due to be announced over the course of the new year.
Broker hikes target price
Following the profit upgrade, analysts at Peel Hunt hiked their target price for Team17 to 440p from 340p and retained their ‘buy’ rating.
“Team17 is one of those stocks that has been highly rated since IPO, but with plenty of reasons to be”, the broker said, highlighting that this was the fifth upgrade to the company’s profit forecasts over the last 12 months.
The upbeat trading statement sent the shares surging 9.7% to 420p in early deals.