Video game developer Team17(TM17) has seen a stock price increase of over three times in the last two years. But I think the best is yet to come for this UK100 holding.
Here is why.
Last years results were released yesterday and look impressive. The company saw a 34% growth in sales, and Its earnings per share grew by 32%. These numbers have been helped along by the pandemic of course. Sales of video games rose by 20% last year, but the gaming industry was growing even before that. Team17 has seen a steady rise in sales and, and its expected that the industry will continue to grow in the foreseeable future as well.
This year it can continue to be fuelled by the pandemic as we (very) slowly come out of lockdown. Further, it is possible that gaming has found new converts as well in these unexpected times, which can bode well for its demand In future. As per Team17’s release, the industry is expected to see a continued growth year on year, and it has referred to both its diverse pipeline of launches for further growth. This indicates that the UK share can continue to increase by leaps and bounds.
So overall, I rate this stock a massive BUY and you should expect to double your money in 12 months.
You can buy TEAM17 on freetrade and even picke up a free share for your troubles!