Ubisoft: Stifel downgrades stock, slashes target price
(CercleFinance.com) - On Thursday Stifel has downgraded Ubisoft shares from "buy" to "hold", having slashed its target price for them from 50 euros to 35 euros, citing a combination of unfavourable factors.
In a report, the broker first said that it is worried about the "overly optimistic" targets set by the video games group, which, it says, would require "record" sales for H2.
In view of the company's recent performance, Stifel also explains that it fears an "execution risk" surrounding the company's medium and long-term projects.
Finally, the fact that the Chinese group Tencent has recently increased its stake in the group's capital reduces the likelihood of an upcoming takeover of the company, a scenario which was behind the share price's recent increase, it concludes.
The broker seems to be right - the Ubisoft share is currently down about 4.5% in Paris.
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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.
In a report, the broker first said that it is worried about the "overly optimistic" targets set by the video games group, which, it says, would require "record" sales for H2.
In view of the company's recent performance, Stifel also explains that it fears an "execution risk" surrounding the company's medium and long-term projects.
Finally, the fact that the Chinese group Tencent has recently increased its stake in the group's capital reduces the likelihood of an upcoming takeover of the company, a scenario which was behind the share price's recent increase, it concludes.
The broker seems to be right - the Ubisoft share is currently down about 4.5% in Paris.
Copyright (c) 2022 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.