Next Games' H1 report surprised positively on profitability as it has reached efficiencies in its publishing operations, which led to essentially cash flow neutral operations. The company plans to release the Stranger Things title in Q4, after which it will host a CMD where we believe it could announce a new financing round or a co-development agreement to support growth initiatives. Due to increased profitability and positive news on the progress of the Stranger Things game, we upgrade our estimates and raise our fair value target to EUR 1.3-2.0 per share (1.0-1.9).
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