Morgan Stanley analyst Omar Sheikh lowered the firm’s price target on Ubisoft to EUR 33 from EUR 52 and keeps an Overweight rating on the shares. The analyst states that after the company’s FY23 profit warning due to shifting consumer preferences for "mega-brands", he expects consensus FY24 EPS to drop about 30%. Sheikh adds that with virtually no chance that investors will price in an M&A premium in the near term, he expects Ubisoft shares to pull back by 20% or more in response to the news.
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