Ubisoft Entertainment shares slump on double-downgrade to sell by UBS

Ubisoft Entertainment shares
UBI,
-3.70%
slumped, making it the second-worst performer in the Stoxx Europe 600, following a double downgrade to sell from buy at UBS, which slashed its price target to €20 from €55. “FY24 guidance will require Ubisoft to successfully deliver the biggest front book revenue performance in its history despite expecting back catalogue to decline post a poor FY23 release slate and a soft consumer backdrop,” said the broker. Next-year’s lineup includes Assassins Creed Mirage, which UBS estimates will have sales of 10 million units, Avatar: Frontiers of Pandora, which UBS sees 6 million sales, and a yet to be announced game which Ubisoft expects to be bigger than The Crew Motorfest. Ubisoft shares fell 4% to €23.55.