(CercleFinance.com) – Deutsche Bank announced on Friday that it had reduced its price target on Ubisoft from 35 to 32 euros, while maintaining a buy recommendation on the stock.
In a note released in the morning, the analyst estimates that the video games group disappointed with its free cash flow (FCF) for the past financial year 2023/2024, coming in at -509 million euros, thus marking a third consecutive year of cash consumption.
A phenomenon that the intermediary explains by the persistence of high development costs despite the implementation of a savings program.
Deutsche Bank nevertheless says it remains constructive on the matter, considering that the group is in the process of getting out of the rut with an expected positive FCF for the current 2024/205 financial year, just as for the next one, before an anticipated resumption of growth for 2026/2027.
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