Analysts turn bearish on Ubisoft as shares slump [Yahoo! Finance]
UBISOFT ENTMT UNSP/ADR (UBSFY)
NASDAQ:AMEX Investor Relations:
ubisoft.com/en-us/company/investor_center/index.aspx
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Source: Yahoo! Finance
Ubisoft shares fell by more than 4% on Wednesday before an over 13% decline in Thursday's session. Several investment banks downgraded their ratings for the company, citing execution risks and mounting competition in the gaming industry. HSBC cut Ubisoft to Hold from Buy, slashing its price target to EUR10.80 from EUR32.00. The firm pointed to the poor reception of Star Wars Outlaws and delays to Assassin's Creed Shadows as key factors. "Execution risks around extracting value show limited signs of easing," HSBC analysts noted, adding that the company's operational challenges remain unresolved despite past turnarounds. The firm expressed doubts about how Ubisoft would address these issues, despite a planned operational review. Deutsche Bank also downgraded Ubisoft to Hold, lowering its price target to EUR15.00 from EUR24.00. The bank noted that Ubisoft's FY25 net bookings guidance had been reduced to €1.95 billion, a significant drop from prior expectations of €2.42 billion
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