Ubisoft: HSBC downgrades recommendation to hold
(CercleFinance.com) - HSBC announced on Friday downgraded Ubisoft shares from 'buy' to 'hold', with a target price slashed from E32 to E10.
8, after the video game designer's profit warning issued this week.
In the analyst's view, the disappointing sales of 'Star Wars Outlaws' and the delay in the launch of 'AC Shadows' will force the group to embark - for the umpteenth time - on a phase of business turnaround.
However, the broker considers that it is not yet clear how the management team will decide to deal with the current problems, which leads him to envisage a certain degree of risk in the near term.
HSBC explains that, in this context, it prefers to downgrade its recommendation, pending better visibility of the strategy management is to adopt to manage these difficulties and finally create value from the company's product portfolio.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as decision-making aids for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
8, after the video game designer's profit warning issued this week.
In the analyst's view, the disappointing sales of 'Star Wars Outlaws' and the delay in the launch of 'AC Shadows' will force the group to embark - for the umpteenth time - on a phase of business turnaround.
However, the broker considers that it is not yet clear how the management team will decide to deal with the current problems, which leads him to envisage a certain degree of risk in the near term.
HSBC explains that, in this context, it prefers to downgrade its recommendation, pending better visibility of the strategy management is to adopt to manage these difficulties and finally create value from the company's product portfolio.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as decision-making aids for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.