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Analyytikko
We feel that Playtika 's bid for Rovio looks good in the short term considering the weak sentiment of the mobile gaming market but would leave the long-term potential on the table. We also expect Rovio’s Board to focus on the potential of the growth areas that the company is nurturing under its wings and that will materialize in the next few years, and thus refuse the offer. We do not believe that Playtika can make a sufficiently higher offer that would make Rovio ignore the risks associated with Playtika's questionable reputation.
With the stable earnings we forecast for the coming years, Rovio's share valuation already looks very low, and we see room for upside. However, a significant upward correction in valuation requires a stronger earnings growth outlook, which Rovio also has the potential to achieve with the games under development, the further development of AB Journey and through acquisitions enabled by strong balance sheet.
