Ubisoft: Barclays cuts its price target

(CercleFinance.com) - On Friday, Barclays reduced its price target for Ubisoft from 12 to 11 euros, in the wake of the French video game group's strategy update the previous day.


In a research note, the analyst believes that the announcement of a downward revision to the company's sales forecasts for the 3rd quarter ended September, as well as for the full 2024/20425 financial year, does not come as a real surprise given the company's recent track record.

However, the intermediary refers to it as a "disappointment", and expresses its reluctance to be confident in the Group's trajectory, which it does not see returning to positive free cash flow (FCF) in the immediate future.

Barclays nevertheless explains that it is difficult for it to hold a negative opinion on the stock while a strategic reorientation is underway.

Based on recent press reports, the professional also mentions the possibility of an offer based on a premium, which leads him to maintain his 'weight in line' recommendation on the stock.

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