Codemasters Stock May Speed Ahead With New Racing Games

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The F1 2020 Deluxe Schumacher Edition, the official videogame of the FIA FORMULA ONE WORLD CHAMPIONSHIP

Courtesy of Codemasters

Most videogame stocks are fully priced based on the increased sales triggered by millions of gamers in coronavirus lockdown.
But
Codemasters Group
(ticker: CDM.UK), which specializes in car-racing games, could still be undervalued. A recent deal to snap up a five-year franchise-making FIA World Rally Championship has yet to be priced in. Codemasters already owns F1, the successful Formula One racing championship game, giving it the top global motosports intellectual property, and it has a strong pipeline of future games.
Codemasters in November bought Slightly Mad Studios for $30 million, adding the Fast & Furious franchise to its stable. The company has the option to make games on the back of films.
Later in 2020,
Microsoft
(MSFT) is due to bring out its new console, the Xbox X,
Sony
(SNE), the PlayStation 5, and Codemasters has racing games ready to launch. The videogame industry is a cyclical business with its strongest sales tied to new console launches.

Shares in Codemasters have steadily increased following a tumble after their stock market debut at 265 pence ($3.25) in June 2018. By October of that year, the stock plummeted to 140 pence …

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