Ubisoft: Oddo BHF ups target price - still a buyer
(CercleFinance.com) - On Monday, an analyst at Oddo BHF confirms a "buy" rating on the Ubisoft share, saying that the failure of one game cannot call everything into question, having good reasons to be confident for the next financial year and deeming the share valuation as still attractive.
The flop of the game Ghost Recon Breakpoint is the main explanation for the 'mega profit warning' launched at the end of October for the current financial year 03/2020 (adjusted Underlying OP target = 20m-50m euros vs. 480m euros previously targeted and 446m euros reported in 03/2019). The broker considers that it is mainly an accident, considering that the organisation is based on a diversification of production studios (including 5 lead vs. just 1 a few years ago), that the managers have always been able to react quickly, while the group's fundamentals remain solid (profitable P&L, healthy balance sheet, etc.), the analyst says.
Oddo BHF has therefore raised its target price from 65 euros to 78 euros, which suggests upside potential of 25%.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The flop of the game Ghost Recon Breakpoint is the main explanation for the 'mega profit warning' launched at the end of October for the current financial year 03/2020 (adjusted Underlying OP target = 20m-50m euros vs. 480m euros previously targeted and 446m euros reported in 03/2019). The broker considers that it is mainly an accident, considering that the organisation is based on a diversification of production studios (including 5 lead vs. just 1 a few years ago), that the managers have always been able to react quickly, while the group's fundamentals remain solid (profitable P&L, healthy balance sheet, etc.), the analyst says.
Oddo BHF has therefore raised its target price from 65 euros to 78 euros, which suggests upside potential of 25%.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.