Ubisoft updates confirm market’s worst fears about company prospects, says Citi

Citi reiterated a Buy rating and EUR45 price target on Ubisoft after the company confirmed that “Star Wars Outlaws” has had a difficult start, delayed the release of “Assassin’s Creed Shadows,” and reduced its FY2024-2025 bookings guidance. The firm said that the “triple whammy” of news will confirm the market’s worst fears about the company’s prospects, adding that the shares have already declined roughly 50% year-to-date. Still, the firm thinks this news will be received “very poorly.”