** Shares in Swedish video game group Embracer OMXSTO:EMBRAC_B are up around 6% to the top of Europe-wide STOXX 600 TVC:SXXP index
** A Redeye analyst Hjalmar Ahlberg points to a Kepler Cheuvreux update on the stock, which reiterated its "buy" rating and hiked PT by 16% to SEK 116
** Kepler cites the upcoming spin-off of Coffee Stain, which it expects to trade at a higher multiple than Embracer, given its high margins, strong communities, and upcoming major game launches
** The brokerage notes that the situation is similar to what happened last year with the successful Asmodee OMXSTO:ASMDEE_B spin-off, which created substantial shareholder value
** Potential share buybacks could support the stock post-spin-off, with nine planned AAA titles, also acting as future catalysts for the group, Kepler adds
** Edward James from Cantor notes that Embracer is a volatile stock, and flags recent reports on its Kingdom Come: Deliverance II game DLC selling well and talk of Dead Island 3 being in production