(News Bulletin 247) – Oddo BHF maintains its ‘neutral’ rating on Ubisoft shares, with an unchanged price target of 27 euros.
The analyst returns in particular to the surprise created by Ubisoft last week with the announcement of an important agreement with Microsoft. The group is buying the perpetual rights from Activision for cloud gaming distribution of its current catalog of games as well as future games launched within the next 15 years.
‘The French content offer will thus be significantly increased (Activision achieved a turnover of $8.5 billion last year vs. €1.7 billion for Ubisoft), in particular with the huge Call of Duty franchise’, indicates Oddo BHF.
If the financial details of the agreement have not been revealed, Oddo BHF believes that this agreement could be a real ‘game changer’ if streaming is successful in the industry.
The broker is nevertheless cautious while waiting for the validation of this agreement and to have better visibility on the development of this market segment.
In the meantime, ‘the stock market performance for the next few months will depend above all on demand for the games launched by Ubisoft’, estimates Oddo BHF.
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