Deutsche Bank has reaffirmed its 'buy' recommendation on Ubisoft despite lowering its target price from 32 to 28 euros, believing that, while a discount to peers is justified, the current valuation does not take into account the company's strong turnaround potential.

In his view, investors 'should begin to reward efforts to refocus development on core IP and address glaring cost inefficiencies in the year to March 2025'.

This strategy for the video game publisher, in stark contrast to its 2019 portfolio expansion strategy, is according to Deutsche Bank 'low-risk, while offering a path to reduced R&D spending and improved predictability'.

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