(News Bulletin 247) – HSBC raised its recommendation on Ubisoft on Wednesday from ‘hold’ to ‘buy’ with a price target raised from 21 to 26 euros, saying it was ‘optimistic’ about the prospects of the video game designer.
In a research note, the broker estimates that the shift initiated following the profit warning in January, consisting of refocusing on core franchises (Assassins Creed, Far Cry, Tom Clancy) and limiting the development of secondary games, is the ‘good strategy’.
According to him, this plan – combined with other measures taken internally – should allow the group to take advantage of new monetization opportunities, while reducing its costs.
HSBC, which warns however that this strategic reorientation will only produce its effects in the long term, underlines that its new objective shows an upside potential of 14.2%.
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