Jefferies announced on Tuesday that it had downgraded its opinion on Ubisoft shares to 'underperform' from 'buy', with a price target reduced from 52 to 17 euros.

In a note dedicated to the video game sector, the American broker warns that after more than 20 years of favorable price dynamics, the positive trajectory of prices could come to a halt against a backdrop of rising living costs.

In this context, Jefferies recommends staying away from the highest-priced developers, for whom the risk of title failure is very real and visibility very limited.

The broker thus sees little potential for pleasant surprises in Ubisoft's sales, while the French group's cost base could, on the contrary, be a source of disappointment.

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