Ubisoft: Midcap Partners reiterates strong buy rating
(CercleFinance.com) - Midcap Partners has strongly reiterated its buy recommendation on Ubisoft shares, which the broker accompanies with a target price of 119 euros.
In a report, analysts review press reports about a possible divorce between Electronic Arts and FIFA, which is reportedly demanding 1 billion dollars for the renewal of their licensing agreement.
While the US publisher has become ultra-dependent on its external licenses such as NHL, PGA and Formula 1, the fact that its share is trading at a 10% stockmarket premium to Ubisoft does not make sense, Midcap Partners says.
The latter owns the majority of the licenses it markets and therefore deserves a premium, it adds.
The share is currently up slightly at just under 46 euros.
Copyright (c) 2021 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.
In a report, analysts review press reports about a possible divorce between Electronic Arts and FIFA, which is reportedly demanding 1 billion dollars for the renewal of their licensing agreement.
While the US publisher has become ultra-dependent on its external licenses such as NHL, PGA and Formula 1, the fact that its share is trading at a 10% stockmarket premium to Ubisoft does not make sense, Midcap Partners says.
The latter owns the majority of the licenses it markets and therefore deserves a premium, it adds.
The share is currently up slightly at just under 46 euros.
Copyright (c) 2021 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.