Video game creator Frontier Developments (FDEV:AIM) should benefit from the launch of its latest game franchise Jurassic World Evolution next summer.
We flagged the appeal of Frontier earlier this month after Chinese entertainment titan Tencent took a 9% stake in the company, which could open more doors to the booming Asian market.
FinnCap analyst Harold Evans today believes Jurassic World Evolution is well-positioned to benefit from popularity surrounding Jurassic World: Fallen Kingdom, the sequel to the highly successful film Jurassic World which is scheduled for release in June 2018.
He says the game has the potential to sell more than 1m units as the Jurassic Park franchise is among the top 20 most successful film franchises.
If the sequel to Jurassic World repeats its predecessor's box office performance and hits $1.7bn, the analyst says Frontier has the potential to sell a staggering 10m units of its game.
‘Importantly, we do not feel that the brand has been overly monetised already as the last console game released was in 2003,’ comments Evans.
Today's news about the game release sends Frontier's shares up 16.3% to 850p.
The analyst has hiked his share price target by 40% from 690p to 968p; however, he doesn't amend near-term earnings forecasts.
Frontier is anticipated to deliver pre-tax profit of £0.9m in the year to the end of May 2018, which is expected to jump to £14.8m in 2019.
