Ubisoft: share price struggling, as UBS still a seller

(CercleFinance.com) - Ubisoft was one of the biggest fallers on the SBF 120 on Thursday morning in Paris, following a negative recommendation from UBS, which reduced its target price for the stock.


In late morning trading the video game specialist's share price was down around 1%, while the SBF was up 0.5%, leading to a YTD decline of 25%.

In ITS morning comments, UBS maintains its 'sell' recommendation on the stock, with a target price lowered from E20 to E16, representing 8% downside potential.

The broker considers the stock's risk/return profile to be unfavourably skewed, and explains that it fears a downward revision of consensus forecasts, despite the positive reviews of its latest title, 'Star Wars Outlaws'.

While it's true that 'Star Wars Outlaws' has received a 'generally favourable' reception, with a score of 77 on metacritic, this performance is in line with the group's previous games, UBS observes.

This reinforces our confidence in the stock's ability to sell some 10 million copies in the 2024/2025 financial year, but we see no indication of an improvement in product quality, as the recent strategic shift was intended to do, the analyst points out.


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