Stifel has upgraded its recommendation on Ubisoft shares from 'hold' to 'buy', with the target price raised from €26 to €28.

In a note published last night, the research firm highlights the 'increased visibility' of the group's future release schedule, starting with the highly anticipated 'Star Wars Outlaws' and 'Assassin's Creed Red', which it believes will hit the market at a quiet period for the sector.

Stifel also considers the share's valuation to be attractive, with multiples now hovering near historic lows.

With a PER 2025 of 11.7x, the stock is trading well below its five-year average (20x) and those of its peers (slightly above 20x), it points out in its note.

While it's true that we've been very critical of Ubisoft in recent years, and we believe that a discount is justified, the magnitude of these deviations, both from historical levels and from those of other video game developers, now seems too severe, leading us to perceive a potential risk/reward bias to the upside", he concludes.

His new price target of 28 euros thus reveals an upside potential of over 30% compared with the previous day's price.

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