Oddo BHF maintains its 'outperform' rating on Nacon shares, with a slightly reduced target price, from 3.7 to 3.5 euros.

Last night, Nacon published results in line with expectations, with full-year sales already reported at 156 ME (stable compared with the previous year), gross margin up 18% to 92.1 ME and net income (NI) up 28% to 12.8 ME (vs. 10.9 MEe).

As for the outlook for 2023/24, Nacon is not disclosing any guidance at this stage, but confirms its line-up of some twenty games, compared with 13 a year earlier.

Nacon is, however, sidestepping the failure of the Gollum release (last May 25).

According to the analyst, the 'bad buzz' surrounding this game, developed by Deadelic, is clearly detrimental to sales in the short term, with an impact of around 5% on EPS, but it 'does not call into question the prospect of a marked rebound in results this year',

After a financial year 2022/23 far from the Group's initial objectives, the bad buzz about Gollum is not likely to reassure in a context that remains delicate in the sector, and the share's reaction over one week attests to this (-21%)", analyzes Oddo BHF.

However, despite the failure of Gollum, which we are taking into account in our new forecasts, the line-up looks set to be fairly dynamic over the next few months, with content that seems to us to be of much higher quality", concludes the broker.

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