Deutsche Bank announced on Friday that it had lowered its price target for Ubisoft from €35 to €32, while maintaining a buy recommendation on the stock.

In a note published in the morning, the analyst believes that the video game group has disappointed with its free cash flow (FCF) for the past fiscal year 2023/2024, which came in at -€509 million, marking a third consecutive year of cash consumption.

The intermediary explains this phenomenon by the persistence of high development costs, despite the implementation of a savings program.

Deutsche Bank nevertheless remains constructive on the case, considering that the Group is in the process of getting out of the rut, with FCF expected to be positive for the current 2024/205 financial year, as well as for the following one, before an anticipated resumption of growth for 2026/2027.

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