UBISOFT Entertainment (0NVL – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Doug Creutz from TD Cowen reiterated a Hold rating on the stock and has a €14.00 price target.
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Doug Creutz’s rating is based on several factors related to Ubisoft Entertainment’s recent financial performance and future outlook. The company reported fiscal year 2025 bookings that slightly missed expectations, with operating income aligning closely with estimates. The guidance for fiscal year 2026 suggests a flat performance compared to fiscal year 2025, with key franchise releases being delayed to fiscal years 2027 and 2028, raising concerns about the company’s execution capabilities.
Additionally, while Ubisoft’s Q4 fiscal year 2025 bookings showed some growth, they were still below both the analyst’s and consensus estimates. The company did see a significant increase in bookings from a new mobile partnership, yet non-PRI bookings were down, likely due to delayed licensing payments. Despite a positive free cash flow for the first time in four years, the company’s cost reduction efforts and new subsidiary plans, including a significant investment from Tencent, contribute to a cautious outlook, justifying the Hold rating.
In another report released yesterday, Deutsche Bank also maintained a Hold rating on the stock with a €12.00 price target.