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Ubisoft’s Mixed Financial Signals Lead to Hold Rating with Slight Price Target Increase

Ubisoft’s Mixed Financial Signals Lead to Hold Rating with Slight Price Target Increase

Aleksander Peterc, an analyst from Bernstein, maintained the Hold rating on UBISOFT Entertainment. The associated price target was raised to €9.50.

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Aleksander Peterc has given his Hold rating due to a combination of factors surrounding Ubisoft’s recent financial performance and projections. The company’s first-quarter report revealed a mixed performance, with net bookings falling short of expectations by 9%, although this was partially balanced by a stronger-than-expected guidance for the second quarter, which was 15% above consensus.
Despite minor downgrades in net bookings and EBITDA forecasts, the impact on the discounted cash flow (DCF) valuation was slightly positive due to a lower weighted average cost of capital (WACC) and adjustments in the quarterly model. Consequently, the price target was marginally increased to €9.5 per share, which is just above the recent closing price, supporting a Market-Perform stance. This balanced outlook reflects the mixed signals from the company’s financials and market conditions.

According to TipRanks, Peterc is ranked #4314 out of 9846 analysts.

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