EIDOS SHARE PRICE SOARS ON MARKETS
Copyright 2001 www.tombraiderchronicles.com

[ October 2nd 2001 ]

Tomb Raider publishers Eidos PLC saw their share price soar 8% during mid-morning trading after heavyweight brokerage firm Goldman Sachs initiated coverage on the stock with an "out-performer" rating, Ananova reports today.

London based Eidos PLC had weathered a financial storm during the past two years after delays from the release of Sonyís Playstation II console and the cancellation of the Sega Dreamcast took its toll. Earlier this year the company presented its shareholders with a £51.7m rights-issue fundraising initiative which saw every third share offered at half price.

However, the imminent release of Microsoft Corpís X-BOX and Nintendo Co Ltdís Game Cube has injected a new financial confidence into the software industry with analysts predicting an expansion of the games market to an estimated 18.9 billion in 2003 based on current growth.

With no new Tomb Raider product planned for this year, Eidos will be forced to rely on less well-established titles, with visibility further impaired by its over-reliance on second-half releases, cautioned the broker.

Nevertheless, the broker said Eidos is still undervalued compared to its peers, and put a DCF price target of 235 pence on the shares. "We expect that positive news flow and earnings momentum as the market returns to growth will drive an expansion in sector ratings," said Goldman.

This confidence reflected Eidos Interactive's share price which at 11.15 am this morning was up 12-1/2 pence or 8.1% to 166.

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