Ubisoft: Oddo confirms rating and updates target price
(CercleFinance.com) - Today Oddo mainly highlights Ubisoft's underlying operating income, which is up 49% at 446 million euros, a level close both Oddo's expectations and the consensus = 440 million euros/454 million euros) and in line with the group's annual target of 440 million euros (roadmap presented 3 years ago).
Analysts explain that this performance particularly linked to solid sales growth, with an improvement in the group's product mix, althouhgh but it includes slightly disappointing Q4 sales.
The broker's current caution towards the share is nevertheless based on a risk of disappointment on the group's FY 2020 targets compared to the consensus (because of a comparison basis that it considers as very high), especially as the group presents higher valuation multiples US peers (around 15%/20%), Oddo adds.
As this publication confirms this issue in the short term, Oddo maintains its Neutral rating on the stock. Based on its estimates for underlying operating profit and net profit, which have been cut by 2% and 5% respectively, the broker has updated its corresponding target price to 75 euros (against 80 euros).
Copyright (c) 2019 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.
Analysts explain that this performance particularly linked to solid sales growth, with an improvement in the group's product mix, althouhgh but it includes slightly disappointing Q4 sales.
The broker's current caution towards the share is nevertheless based on a risk of disappointment on the group's FY 2020 targets compared to the consensus (because of a comparison basis that it considers as very high), especially as the group presents higher valuation multiples US peers (around 15%/20%), Oddo adds.
As this publication confirms this issue in the short term, Oddo maintains its Neutral rating on the stock. Based on its estimates for underlying operating profit and net profit, which have been cut by 2% and 5% respectively, the broker has updated its corresponding target price to 75 euros (against 80 euros).
Copyright (c) 2019 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.