BofA analyst Omar Dessouky notes that Ubisoft (UBSFY) lowered guidance by at least EUR 430M, driven by underperformance of two small franchises and the postponement of "Skull & Bones." However, the company said it saw "great momentum" for Assassin’s Creed, generally solid performance from its live games, and emphasized its plans to narrow focus on only its strongest franchises, said Dessouky, who thinks Ubisoft’s commentary validates Buy ratings on Electronic Arts (EA) and Take-Two (TTWO), which each have their own "mega brands." Most investors he polled after Ubisoft’s announcement were not concerned about a negative read through for EA and Take-Two and considered the situation "idiosyncratic," Dessouky added.
Published first on TheFly
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