HSBC on Wednesday raised its recommendation on Ubisoft from 'hold' to 'buy', with a target price raised from 21 to 26 euros, saying it was 'optimistic' about the video game developer's prospects.

In a research note, the broker believes that the shift initiated following the January profit warning, consisting of refocusing on core franchises (Assassins Creed, Far Cry, Tom Clancy) and limiting the development of secondary games, is the 'right strategy'.

In his opinion, this plan - combined with other measures taken internally - should enable the group to take advantage of new monetization opportunities, while reducing costs.

HSBC, which warns however that this strategic reorientation will only produce its effects over the long term, stresses that its new target shows an upside potential of 14.2%.

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