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Ubisoft’s Strategic Plans and Financial Stability Lead to Hold Rating Amid Cost-Cutting Measures and Potential Partnerships

Ubisoft’s Strategic Plans and Financial Stability Lead to Hold Rating Amid Cost-Cutting Measures and Potential Partnerships

UBISOFT Entertainment (0NVLResearch Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Aleksander Peterc from Bernstein maintained a Hold rating on the stock and has a €10.10 price target.

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Aleksander Peterc’s rating is based on Ubisoft’s recent financial performance and strategic plans. The company reported third-quarter net bookings that were in line with their revised guidance, indicating stability in their revenue projections. Furthermore, Ubisoft reiterated its fiscal year 2025 guidance for net bookings and operating income, suggesting a consistent outlook despite previous reductions.
Additionally, Ubisoft is actively pursuing cost-cutting measures, planning to achieve significant fixed cost reductions a year ahead of schedule and indicating more cuts in the future. The strategic review process is in progress, with potential interest from major players such as Tencent and Savvy Games. While there is optimism for future releases and revenue contributions, particularly from upcoming game titles, the current outlook and strategic uncertainties have contributed to the Hold rating.

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

0NVL’s price has also changed moderately for the past six months – from EUR16.992 to EUR10.949, which is a -35.56% drop .

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