Handelsbanken raises its short-term recommendation for gaming entertainment company MTG to buy from hold and reiterates its long-term recommendation of outperform with a target price of SEK 130 over three years.

The recommendation change comes two days after the company announced an acquisition of the game studio Plarium for SEK 6.7 billion.

"MTG trades at ev/ebitda 4.3x (2025p), indicating low confidence in the stock. In light of the highly earnings and value accretive acquisition, we raise our short-term recommendation to buy and reiterate our long-term recommendation of outperform," it said in an analysis.

The share rises 2.8 percent to SEK 91.