Ubisoft: BMO Capital rescues the stock, which rebounds

(CercleFinance.com) - Ubisoft's share price regained some color on Wednesday after losing half its value over the last two months due to fears surrounding sales volumes of its latest title, 'Star Wars Outlaws'.


At 2:30 pm, the video game specialist's shares were up 6%, the second biggest gainer on the SBF 120 index behind Atos.

At last night's close, the stock was down almost 50% since the start of the year, on the back of disappointing results and a mixed outlook.

Due to the lacklustre reception given to 'Star Wars Outlaws' by critics and users alike, its fall steepened at the end of the summer, sending the stock back to ten-year lows.

With the stock now trading at 2.7 times expected Ebitda by 2026, the video game designer's valuation has now become "too cheap to ignore", according to the teams at BMO Capital.

As a result, the US broker has raised its opinion to 'outperform' from 'in-line performance', believing that it is still too early to bury the stock.

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