Ubisoft assumed with Underperform from Buy at Jefferies

Jefferies analyst Sebastian Patulea double downgraded Ubisoft to Underperform from Buy with a price target of EUR 17, down from EUR 52, after assuming coverage of the name. The analyst sees "de minimis revenue visibility" for high-ticket video game developers like Ubisoft. The company’s games are typically more expensive at a time when consumer budgets are squeezed by a cost-of-living crisis, the analyst tells investors in a research note. The firm believes Ubisoft is in the early stages of an earnings downgrade cycle.