Games Workshop shares are undervalued says broker as My Warhammer registrations surge
FTSE 100 juggernaut Games Workshop has seen its stock price upgraded by a City broker after stating that trading had been running ahead of expectations in 2025.
In a typically brief trading update today, the Warhammer maker said it expected its profit before tax to run ahead of analyst forecasts this year.
“Games Workshop announces that trading in January and February has been ahead of expectations, with strong trading across both the core business and licensing,” the company said.
“As a result, the group’s profit before tax for the 12 months to 1 June 2025 is estimated to be ahead of expectations.”
Following the trading update, the FTSE 100 firm’s stock price jumped by five per cent. It is up more than 54 per cent over the last year.
Following the trading update, City broker Peel Hunt upgraded the firm’s sales forecasts by five per cent, with profit before tax expectations increasing by nine per cent.
“We are not changing our longer-term forecasts at this stage, but the hobby is in good health which bodes well,” said Peel Hunt analysts Charles Hall and Andrew Ford.
My Warhammer registrations increased by 21 per cent to 695,000 in the first half of the financial year, noted the analysts, while email subscribers jumped by 10 per cent Warhammer+ subscribers rose by 22 per cent.
The Peel Hunt analysts also moved their target price for the Warhammer maker from 14,400p to 15,000p. Games Workshop shares traded up to 14,400p this morning.
“In a world full of uncertainty around economics, politics and consumer and business confidence, it’s refreshing to see a company be able to get on with the job of making money,” said Russ Mould, investment director at AJ Bell.
Games Workshop was promoted to the FTSE 100 in December, and has managed to solidify itself in London’s main index.
“Games Workshop is showing resilience in the face of a difficult market backdrop and it’s impressive how it has prospered this year,” added Mould.