Ubisoft: new lows, Cantor Fitzgerald downgrades

(CercleFinance.com) - Ubisoft managed to limit its losses at the end of trading on Monday, even though the video game designer's stock is still posting significant losses following Cantor Fitzgerald's downgrade, which takes it back to ten-year lows.


At around 4:40 pm, the stock was still down nearly 7%, retracing its historic low of mid-October 2014, after having given up nearly 10% mid-morning.

In a research note this morning, analysts at Cantor Fitzgerald downgraded their advice on the stock from 'neutral' to 'lighten up', with a price target reduced from €25 to €17.6.

Like the character Han Solo in 'Return of the Jedi', the American broker says it has a 'bad feeling' about the French group's situation.

In his study, Cantor explains that he is particularly concerned about the reviews and ratings received by its latest game 'Star Wars Outlaws', which he believes is well on the way to disappointing market expectations.

The broker indicates that he has consequently reduced his targets for the company, which are now below those set by the company itself.

In our view, Ubisoft has missed the opportunity to reverse the trend in its share price after years of underperformance", stresses the professional.

"With an environment that promises to be much more competitive in 2026, the task will only become more difficult for the group", warns the broker in his note.

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