Christoffer and Atte have released a new company report on Starbreeze following the Q3 results. 
Starbreeze reported Q3 revenue in line with expectations, but adjusted operating profit fell short of expectations primarily due to higher depreciation and amortization. PAYDAY 3 revenue was particularly low relative to our forecasts, but this was offset by the renewed strength of PAYDAY 2 following the introduction of a subscription model. As we understand it, monthly content updates for PD3 will begin from December onwards, and the company is offering shorter, continuous content plans instead of annual plans. However, visibility for new work-for-hire projects remains limited, and as the KRAFTON partnership nears completion, we have lowered our revenue assumptions due to timing effects. This, combined with changes in the expected revenue structure and slightly higher depreciation/amortization, led to downward revisions in our forecasts. Due to PD3’s continued low player activity, we believe the company has a lot to prove before a stronger scenario can be confidently priced in. Despite 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 (was SEK 0.15).