CFRA downgrades Ubisoft to 'Sell' amid weak net booking, Tencent talks

Investing.com -- CFRA downgraded Ubisoft Entertainment (EPA: UBIP) to "Sell" from "Hold" and lowered its price target to EUR10 from EUR14, citing weak bookings and uncertainty over buyout talks with Tencent.

The firm noted that Ubisoft’s 9M FY25 net bookings fell 34.8% to EUR944 million, while Player Recurring Investment bookings dropped 33.7%. A lack of new launches in the second and third fiscal quarters contributed to the decline. Only last week, the French video game reported third-quarter net bookings in line with its revised guidance, which had then eased investor concerns following a series of profit warnings in recent months.

CFRA also pointed to reports of stalled buyout discussions with Tencent, attributing the setbacks to disputes over control. The firm sees reduced buyout prospects and reputational damage from Ubisoft’s monetization and game direction decisions as key risks.

CFRA now forecasts a FY25 EPS loss of EUR0.50 and lowered its FY26 EPS estimate to EUR1.00 from EUR1.20.

Ubisoft is betting on major releases to drive its recovery. Assassin’s Creed Shadows, launching in the final weeks of the fiscal year, is expected to contribute strongly to 2026 revenue.

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