Christoffer and Atte have prepared a new company report on Starbreeze after the Q3 results. 
\nStarbreeze reported Q3 revenue in line with expectations, but adjusted operating profit fell short of expectations, mainly due to higher depreciations. PAYDAY 3 revenue was particularly low compared to our forecasts, but this was compensated by the renewed strength of PAYDAY 2 after the introduction of its subscription model. We understand that PD3’s monthly content updates will begin from December onwards, and the company will offer shorter, continuous content plans instead of annual ones. However, visibility into new work-for-hire projects remains limited, and as the KRAFTON partnership approaches completion, we have lowered our revenue assumptions due to timing effects. This, combined with expected changes in the revenue structure and slightly higher depreciations, led to downward forecast revisions. Due to the persistently low player activity in PD3, we believe the company has much to prove before a stronger scenario can be confidently priced in. Given the low absolute valuation, the lack of clear short-term drivers keeps us on the sidelines. We reiterate our Reduce recommendation and lower our target price to SEK 0.14 (previously SEK 0.15).
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