We reinitiate coverage of G5 Entertainment, a developer and publisher of casual games for smartphone, tablet and PC platforms. Since 2019, G5 has implemented an impressive turnaround: transforming its revenue mix and optimising its user acquisition (UA) investments have greatly bolstered its margins. Our DCF analysis yields a fair value range of SEK 300-500; the mid-point of SEK 400 per share implies a 2022E EV/EBIT of 13x.
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