Shares of Ubisoft (OTCPK:UBSFF) fell 15.3% premarket to $16.35 on the OTC Exchange on Monday after Cantor Fitzgerald downgraded the game publisher’s stock to neutral from overweight.
The research firm cut rating on the stock on lower expectations for the recent titles. The Star Wars Outlaws game, which came out in August, “has disappointed players and seems likely to underperform expectations,” Cantor said.
Cantor analyst Edward James also pointed to a recent report, which said XDefiant player numbers are on a steady decline and has left a large hole for the upcoming Assassin’s Creed Shadows game to fill, which is also facing diverging public opinion.
The equity research firm cut its price target to €17.6 from €25. Seeking Alpha Quant and SA analysts on average rate the stock “hold,” while Wall Street has a “sell” rating.
Additionally, on Monday, WSJ reported that minority investor AJ Investments called for videogame maker to go private and install a new management team. The hedge fund is based in Slovakia and holds less than 1% in Ubisoft.
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