Ubisoft suffered the second biggest drop in the SBF 120 index on Friday, penalized by cautious comments from Morgan Stanley analysts, who explained that they preferred to stay away from the stock.

At around 2:10 pm, the video game designer's shares were down 2.3%, while the SBF 120 was up 1.5%.

Analysts at Morgan Stanley initiated coverage of the stock this morning with a 'weight in line' recommendation and a price target of 31.5 euros.

In a note, the research firm acknowledges that the French group not only has a vast market and potential cost leverage, but is also well placed, both culturally and technologically, to benefit from the emergence of AI.

Morgan Stanley also points out that the company's operating performance has been disappointing recently, while competition in its market remains as fierce as ever.

For the research firm, the group's short-term profile is not without risk, at a time when it is trying to revive its growth momentum with new securities.

It is also possible that the evolution of consumer tastes will lead to a shift away from Ubisoft's historical positioning, which has become known for its vast, detailed and open universes", it concludes.

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