Deutsche Bank announced on Tuesday that it had lowered its price target for Ubisoft from €40 to €35, in anticipation of the video game group's third-quarter sales publication, scheduled for February 8.

In a note issued this morning, the financial intermediary said that a downward revision of forecasts was likely on this occasion, but that it was also, in its view, factored into the current share price.

The analyst explains that he has reduced his sales estimates for 'Avatar: Frontiers of Pandora', which has led him to cut his quarterly sales forecast by 12% to 603 million euros.

In view of the mixed performance of 'Avatar', Deutsche is also lowering its annual sales forecast by 4%, and its target for operating profit before non-recurring items (Ebit) by 10%.

We therefore anticipate a downward revision of its targets by 10%, while believing that the 33% fall in the share price since November 2023 reflects a much more unfavorable scenario", he concludes, renewing his buy recommendation on the stock.

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