BofA says (NASDAQ:EA)
Ubisoft stock 14% off in France on Thursday, its first action there follows a major financial update late Wednesday that saw the video game maker increase write decrease, cancel more projects and cut instructions.
Foreign stocks on pink plate (OTCPK:UBSFF) to be down 4.8% Thursday, while its US Depository Receipts were calmer in US trading – (OTCPK:UBSFY) +0.5% – along with a response from BofA suggesting that the guide should not be read to rival publishers.
Analyst Omar Dessouky said the “deep cut” to guidance was a surprise, but the company’s latter category remains “healthy” with “particularly strong” activity on Rainbow Six Siege. big momentum” on Assassin’s Creed, and some performance is generally solid on live games.
Dessouky paid particular attention to comments from Ubisoft CEO Yves Guillemot, who said that when a potential recession hits consumer spending, “big brands” will account for a high percentage of spending. than the more obscure titles and newer releases.
That authenticates Buy ratings for rival publishers Electronic Arts (NASDAQ:EA) and Take-Two Interactive Software (NASDAQ:TTWODessouky notes that each company has two “big brands”. And most of the investors he talks to don’t see negative read-throughs.
“We forecast high single-digit growth for EA in 2024 (driven by 70% FIFA & Live Services), and TTWO’s 48% growth in PC/Console revenue (powered by a number of launches from franchises and studio leaders with longstanding reputations and solid performance). the word NBA 2K CZK and GTA Online),” Dessouky said.
On Wednesday, JP Morgan looked at the video game sector and found some concrete positives to look forward to. even downgrading Nintendo and Konami.