Ubisoft initiated with a Market Perform at BMO Capital

BMO Capital initiated coverage of Ubisoft with a Market Perform rating and EUR 27 price target. Ubisoft, “essentially a smaller European peer to EA and Take-Two,” is known for taking more creative risk than the American publishers, which results in structurally higher R&D, but lower M&A, the analyst tells investors. While the firm sees the company being well positioned for a “surging console tailwind,” it argues that lacking “a true mega-hit game places Ubisoft at a disadvantage.”