Ubisoft: Strategic Reset and Operational Progress Offset by Volatility, Justifying a Hold Rating

In a report released today, Aleksander Peterc from Bernstein maintained a Hold rating on UBISOFT Entertainment, with a price target of €4.20.

Aleksander Peterc has given his Hold rating due to a combination of factors, including a solid third-quarter performance that slightly exceeded updated guidance and confirmed that Ubisoft is delivering on its recently announced strategic reset. The company is rolling out its new Creative Houses structure, reallocating studios, and beginning leadership changes, while planned headcount reductions and a sizable fixed-cost savings program are intended to support a leaner, more efficient organization.

Peterc also notes that management reaffirmed its medium-term guidance, and his own forecast revisions were minimal, with the higher price target largely driven by routine model updates rather than a fundamental re-rating of the business. The sharp share price increase following results is seen as more likely driven by short covering than by new positive information, and he expects the stock to remain highly volatile, which leads him to maintain a cautious stance and a Market-Perform (Hold) recommendation despite the operational progress.

In another report released on February 14, TipRanks – PerPlexity also reiterated a Hold rating on the stock with a €4.50 price target.