Ubisoft was one of the biggest losers in the SBF 120 on the Paris Stock Exchange on Thursday morning after UBS issued a negative recommendation and lowered its price target for the stock.
At around 10:45 a.m., the video game specialist’s share price was down around 1 percent, while the SBF rose by 0.5 percent, resulting in a decline of 25 percent since the beginning of the year.
In a statement published this morning, UBS maintained its sell recommendation for the stock, but lowered the price target from 20 to 16 euros, which corresponds to a downside potential of 8 percent.
The broker considers the risk/return profile of the stock to be unfavorable and explains that despite the positive reviews of his latest title, “Star Wars Outlaws,” he fears a downward revision of the consensus forecasts.
“While Star Wars Outlaws has received a ‘generally favorable’ rating with a score of 77 on Metacritic, this performance is in line with the group’s previous games,” UBS notes.
This reinforces our confidence that the stock can sell around 10 million units in the 2024/2025 financial year. However, we see no signs of an improvement in product quality, as was intended with the recent strategic realignment,” emphasizes the analyst.
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