AlphaValue slashes Ubisoft to 'sell' after profit warning, game cancellations

Ubisoft Entertainment SA

23/01/2026 08:28

** AlphaValue issues a "sell" rating on French video game publisher Ubisoft UBIP.PA, citing serious execution issues after another guidance miss and multiple game cancellations

** Broker notes the company now expects a non-IFRS operating loss of 1 billion euros ($1.17 billion) for FY 2025/26, driven by six cancelled games and a 650-million-euro asset write-down

** It says the "destruction of trust will be hard to rebuild" and does not expect a major improvement in results before 2028

** AlphaValue also points to heavy discounting of up to 85% on Ubisoft's games as the company seeks to boost sales volumes in the current fiscal quarter

** Brokerage slashes its EPS estimate for FY 2025/26 to -6.11 euros from -0.72 euros and cuts its PT to 4.11 euros

** Out of 15 analysts that cover Ubisoft, three rate the stock "strong buy" or "buy," eight rate "hold" and four rate it "strong sell" or "sell" - LSEG data

 (Reporting by Jerome Terroy)

 ((jerome.terroy@thomsonreuters.com))