The sector's calling card, rebuilding trust, and lack of prospects. Here's a look at stock market gaming in a nutshell.

• CD Projekt is the highest-quality company in the Polish gaming portfolio, but recent impressive growth has created room for a correction, BM mBank analysts point out.
• In the case of Huuuge, they see almost 50% potential for growth in its stock market valuation.
• PCF Group faces relatively poor prospects, having suffered a 70% decline in its share price over the past year due to internal problems.

For CD Projekt, analysts at BM mBank recommend selling the stock (previously "buy") with a target price of PLN 258 (PLN 241 previously). As of Wednesday, July 16, a single CD Projekt share is trading at PLN 265. This is 7% lower than at the turn of June and July, when the company reached a seasonal peak of PLN 286 per share. They also recommend selling 11 bit studios , with a target price of PLN 193 per share (PLN 182 previously). As of Wednesday, a single 11 bit studios share is trading at PLN 183, representing a one-year rate of return of -70%.

In turn, they recommend "buy" for game developer Huuuge , with a target price of PLN 28.90. On Wednesday, one share of the company costs PLN 19.50. For Ten Square Games, the recommendation is "hold," and The target price was set at PLN 87.80 (PLN 101 previously). On Wednesday, one TSG share cost PLN 82.

The sector's showcase, rebuilding trust and the lack of prospects - Polish gaming in a nutshell

Analysts devoted some attention to each of the companies discussed, focusing on the most important factors that may determine the behavior of the share price in the future.

In December 2024, analysts at BM mBank identified CD Projekt as a favorite in the gaming sector, factoring in the appreciation of the złoty against the dollar in their forecasts. Since then, the price has risen by 60%, which they believe now creates some room for decline.

Analysts emphasized that fundamentally CD Projekt is the highest-quality company in the Polish gaming portfolio , with two strong brands and PLN 1.5 billion in cash for future projects.

As a reminder, CD Projekt announced on Tuesday, July 15, the release date of the final version of "Cyberpunk 2077" for MAC computers as July 17, 2025.

The second company from the gaming sector for which the sale of shares is recommended is 11 bit studios .

On June 13, 2025, the company released "The Alters," which, unlike "Frostpunk 2," was met with positive reception. Total sales of "The Alters" for PC and consoles through July 7 of this year (inclusive) amounted to 280,000 units.

- Although "The Alters" remains a key element in rebuilding positive sentiment towards 11 bit studios after the fiasco of "Project 8" and the premiere of "Frostpunk 2", we do not see any significant catalysts on the horizon - analysts point out.

Analysts see room for solid growth for Huuuge . They believe the company has recently reported a number of positive developments: some stabilization in the casino segment, growing revenue from its own store, and a 30% reduction in headcount. The target price (PLN 28.9) is a whopping 50% higher than the current price.

Huuuge estimates that it will generate $58.8 million in sales revenue in the second quarter of 2025, down about 7% from the same period last year. For comparison, consolidated sales revenue in the first quarter reached $62.4 million, compared to $67 million a year earlier.

A company with a questionable future

On the other side of the gaming waters, another digital entertainment producer listed on the Warsaw Stock Exchange (GPW) and once highly anticipated, PCF Group , has suspended its recommendations for this company due to the complete lack of details regarding the timeline or profitability of current projects . In their opinion, this creates high uncertainty in forecasting future cash flows.

Experts indicate that PCF Group needs a significant cash injection to maintain the status quo, or a thorough restructuring involving a significant change to the business model.

We wrote about PCF Group's problems a few weeks ago. On June 1st, the company's management decided to suspend work on two game projects: "Gemini" and "Bifrost." At the same time, the decision was made to reduce the development team by over 50 people.

After PCF Group's management announced it was abandoning two projects, the company's share price surpassed all expectations, sending its share price to historic lows. PCF Group's market capitalization fell to PLN 200 million, despite its 2020 debut on the Warsaw Stock Exchange (GPW) at a valuation of PLN 1.4 billion.

PCF Group debuted on the Warsaw Stock Exchange in December 2020, a year marked by COVID-19, which proved to be a bull market for gaming companies. At that time, the relatively large IPO (initial public offering) attracted considerable investor interest, with retail subscriptions reduced by a staggering 98%. Shortly after the debut, the share price reached a historic high of over PLN 85. Currently, one share costs around PLN 5, resulting in a valuation of just PLN 200 million.