Deutsche Bank announced on Friday that it had raised its price target for Ubisoft from 35 to 38 euros, while reiterating its buy recommendation on the stock.

Despite fears of a possible downward revision of the group's targets, the video game publisher last night confirmed its forecasts for the 2023-2024 financial year, still forecasting "strong growth" in net bookings and annual operating income of around 400 million euros, according to the analyst.

These reassuring forecasts follow, in his opinion, solid third-quarter results, during which net bookings, at 626 million euros, exceeded the company's target of 610 million, despite the rather disappointing performance of the title 'Avatar: Frontiers of Pandora'.

While the stock has fallen by almost 30% over the last four months due to growing interest from short sellers in anticipation of a possible warning, these better-than-expected results should help restore market confidence, concludes the research department, especially in view of the impressive release schedule that is shaping up for the 2024/2025 financial year.

Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.