(News Bulletin 247) – Stifel lowered its recommendation on Ubisoft on Thursday, from ‘buy’ to ‘hold’ with a price target reduced from 50 to 35 euros per share, citing a combination of unfavorable factors.

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In a research note, the intermediary first said that he was concerned about the “overly optimistic” objectives set by the video game group, which, according to him, required the achievement of “record” activity figures for the second part of exercise.

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.

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Finally, the recent increase in the capital of the Chinese Tencent reduces according to him the probability of an upcoming takeover of the company, a scenario which was at the origin of the progression of the title lately, he concludes.

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