Ubisoft: Invest Securities begins to monitor as a seller
(CercleFinance.com) - Invest Securities analysts have initiated their coverage of the Ubisoft share with a target price of 58 euros.
The broker says that Ubisoft, one of the world leaders in traditional video games, is being forced to adapt its business model to the new attention-grabbing battle that is raging in the entertainment industry, aiming to grow its revenues by capturing a greater share of consumers' leisure time.
To achieve this, the group has initiated a major transformation of its games portfolio, which was originally poorly suited for new market conditions. In our opinion, this strategy is complex to execute, which could prevent it from capturing all the growth potential expected from the video games market, Invest Securities adds.
The market seems to agree - the share is down around 1.5% an hour into trading on Monday.
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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 broker says that Ubisoft, one of the world leaders in traditional video games, is being forced to adapt its business model to the new attention-grabbing battle that is raging in the entertainment industry, aiming to grow its revenues by capturing a greater share of consumers' leisure time.
To achieve this, the group has initiated a major transformation of its games portfolio, which was originally poorly suited for new market conditions. In our opinion, this strategy is complex to execute, which could prevent it from capturing all the growth potential expected from the video games market, Invest Securities adds.
The market seems to agree - the share is down around 1.5% an hour into trading on Monday.
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.