Benchmark Co. analyst Mike Hickey has maintained their neutral stance on 0NVL stock, giving a Hold rating today.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Mike Hickey’s rating is based on Ubisoft’s recent financial performance and strategic outlook. The company reported Q1 net bookings that fell short of expectations, primarily due to underperformance in its key franchise, Rainbow Six Siege, and delays in B2B revenues. Despite these challenges, Ubisoft’s management remains optimistic about long-term growth, citing strong engagement trends and strategic transformations, such as the Creative Houses initiative and the Tencent transaction.
Furthermore, while Ubisoft’s digital and PRI bookings saw a decline, the back-catalog bookings showed resilience with a notable increase. The company has also provided forward guidance indicating a significant sequential increase in Q2 net bookings, driven by delayed revenues and new content releases. However, the full-year outlook remains cautious with expectations of stable net bookings and break-even operating income. Given these mixed signals, Mike Hickey has opted for a Hold rating, reflecting a balanced view of potential risks and opportunities.
Hickey covers the Communication Services sector, focusing on stocks such as IMAX, Take-Two, and National Cinemedia. According to TipRanks, Hickey has an average return of 6.1% and a 62.63% success rate on recommended stocks.
In another report released today, UBS also maintained a Hold rating on the stock with a €10.00 price target.