2023-06-28 11:01:05 ET
Ubisoft stock got an early boost Wednesday after Citi opened a 90-day positive catalyst watch ahead of July earnings and some ambitious game releases on its watchlist.
The company's stock was 2.7% higher in Paris; in U.S. trading, ( OTCPK:UBSFY ) +2.1% , ( OTCPK:UBSFF ) +4.7% .
"Against the backdrop of [fiscal year] consensus forecasts that assume the group misses guidance and a depressed valuation (11x EBIT vs. US peers on 16x+), we think consistent delivery by itself may be enough to drive upgrades and a rerating," analyst Thomas Singlehurst said. "The 1Q results on 20 July may help with specific guidance on 2Q net bookings but this is not the only catalyst."
"We think confirmation of the launch of Xdefiant over the summer, even middling feedback on Skull & Bones during its closed beta in August and a robust performance for The Crew Motorfest in September may be enough to drive a reappraisal of risk/reward," he added.
Citi has a target price of €45, implying 73% upside from here.
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Ubisoft rises as Citi opens upside watch on earnings, new games