Ubisoft: Jefferies raises target price

(CercleFinance.com) - Jefferies has reinstated its "buy" rating on the Ubisoft stock and has raised its target price from 76 euros to 98 euros, after the video games publisher published its FY 2017-18 results, in turn reducing risks surrounding FY 2018-19.


The broker underlines that Ubisoft has delivered record operating results, which were boosted by Far Cry and strong growth in digital revenues, which make Ubisoft's model more recurrent, predictable and profitable.

In its opinion, the group only needs to sell 19 million units of three games together to generate the expected operating profit of 400 million euros. Also, its partnership with Tencent could bring Rainbow 6 to China this year, which comes as a surprise.


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