Polish analysts have reduced the valuation of CD Projekt shares by almost half — to $58 apiece

In its latest report, the Polish firm DM BOŚ estimated the value of CD Projekt shares at only 231 Polish zloty ($58.7) apiece. Analysts called the creators of Cyberpunk 2077 the “most hated” studio in the world and lowered the forecast for sales of the company’s games. However, they believe that developers have a chance to return to previous heights.Update: In the DM BOŚ estimate, we are talking about the stock price per share.

We have corrected an inaccuracy in the original text of the news.

For comparison, the last valuation of CD Projekt shares from DM BOŚ was 461 Polish zloty ($117) apiece. According to the Polish edition Bankier.pl analysts expect that the publisher will be able to sell 49 million copies of its games for the period 2020-2024 — this is 31% less than the previous forecast of 71.1 million copies.

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course, the launch of Cyberpunk 2077 affected the reduced rating. Among the main problems of the game DM BOŚ calls the premature announcement of the release date, a large number of technical errors at the start, a huge difference in versions for consoles of the last generation and modern PCs, as well as problems in communication within the studio due to remote work.

“In a few months, CD Projekt has gone from being the most beloved studio in the world to the most hated. It will not be easy to regain the trust of players and investors, but it is not an impossible task,” the report says.

Despite all the reputational losses, DM BOŚ looks positively at the prospects of CD Projekt. Cyberpunk 2077 has millions of fans, and the game itself has already become the second largest franchise of the Polish company. According to analysts, the presence of a multimillion-dollar community is invaluable for any publisher.

DM BOŚ expects CD Projekt’s net profit for 2021 to be about $158 million — for comparison, analysts estimated this figure for last year at about $300 million.

If the company manages to solve the main problems with Cyberpunk 2077, release a stable version for a new generation of consoles and return the game to the PS Store, it has a chance to quickly regain its position. In such a positive scenario, analysts predict that CD Projekt’s net profit for 2022 could be about $280 million.