Ubisoft: HSBC upgrades stock
(CercleFinance.com) - On Wednesday HSBC upgraded its rating on Ubisoft shares from "hold" to "buy", raising its corresponding target price from 21 euros to 26 euros, saying that it was "optimistic" about the prospects for the video game designer.
In a report, the broker believes that the turnaround initiated following the January profit warning, consisting of refocusing on core franchises (Assassins Creed, Far Cry, Tom Clancy) and limiting the development of secondary games, is the "right strategy".
According to analysts, this plan - combined with other measures taken internally - should enable the group to take advantage of new monetisation opportunities, while reducing costs.
HSBC warns that this strategic shift will only have an effect in the long term, although points out that its new target shows upside potential of 14.2%.
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