Ubisoft plummets by more than 18% on the heels of a major earnings warning for the current fiscal year, prompting Oddo BHF to downgrade its opinion from 'outperform' to 'neutral' and halve its target price to 21 euros.

The video game publisher now expects net bookings to fall by more than 10% over its 2022-23 financial year, instead of growing by more than 10%, as well as non-IFRS operating income of -500 million euros, compared with 400 million previously.

This reflects the more difficult environment, which was notably reflected in the lower-than-expected performance of 'Mario + Rabbids: Sparks of Hope' and 'Just Dance 2023'," said Ubisoft on Wednesday evening.

We are dismayed by the scale of the difficulties encountered by Ubisoft, which have led to a sharp downward revision of our earnings forecasts (including -22% on average for adjusted ROC for fiscal years 2024 and 2025)", reacted Oddo.

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