Citi Raises Price Target for Keywords Studios Plc Amid Buyout Offer
In a recent update, Citi has revised its price target for Keywords Studios Plc (KWS:LN) (OTC: KYYWF) shares to GBP24.50 from GBP23.15, maintaining a Neutral rating. This adjustment follows the company's acceptance of a buyout offer at 2450p per share, with strong shareholder support.
Keywords Studios, a key player in the video game industry, has received backing from major shareholders for the acquisition bid. The likelihood of the deal's completion is high, prompting Citi's analyst to factor in a near-certain probability and adjust the price target accordingly.
The proposed acquisition, which offers a premium to Keywords Studios' current share price, is viewed favorably by the company's board despite recent trading weaknesses. EQT, the potential acquirer, believes that privatizing Keywords Studios will facilitate long-term growth outside the public market.
Citi's raised price target signals confidence in the takeover's successful conclusion, marking a significant milestone for Keywords Studios as it transitions into private ownership.
In conclusion, the acceptance of the buyout offer and Citi's updated price target indicate a positive outlook for Keywords Studios' future. The move to go private could potentially drive the company's growth and expansion, benefiting both shareholders and the company's long-term prospects.