Oddo BHF has downgraded its opinion on Ubisoft from 'outperform' to 'neutral', with a target price cut in half to 21 euros, in the wake of a 'mega profit warning' issued by the video game publisher for its current fiscal year 2023.

We are bewildered by the scale of Ubisoft's difficulties, 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)", commented the analyst.

Oddo adds that this earnings warning means that the dossier has lost the last support for its positive recommendation, namely the valuation, which remained after the deflation of speculative appeal (following the September deal with Tencent).

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