Ubisoft Entertainment: Hold Rating Amid Fiscal Challenges and Strategic Uncertainties

Benchmark Co. analyst Mike Hickey has maintained their neutral stance on 0NVL stock, giving a Hold rating yesterday.

Mike Hickey has given his Hold rating due to a combination of factors impacting Ubisoft Entertainment’s financial outlook. The company’s fiscal year 2025 performance was largely in line with revised expectations, with net bookings decreasing by 20% year-over-year and a reported operating loss. While the launch of Assassin’s Creed Shadows showed promising engagement and monetization, there are ongoing concerns about weak partnership revenue and declining trends in legacy titles.
Looking forward, the transaction with Tencent is expected to improve liquidity and reduce debt, providing strategic flexibility. However, the outlook for fiscal year 2026 remains challenging with a breakeven profitability forecast and potential risks if no major new game releases occur. Despite some positive developments, such as strong performance in certain titles and improved cash flow, the lack of clear evidence for long-term benefits from cost cuts or franchise expansion contributes to the Hold rating.

According to TipRanks, Hickey is a 4-star analyst with an average return of 3.7% and a 63.03% success rate. Hickey covers the Communication Services sector, focusing on stocks such as National Cinemedia, IMAX, and Cinemark Holdings.

In another report released yesterday, TD Cowen also reiterated a Hold rating on the stock with a €14.00 price target.