Wedbush analysts believe Ubisoft Entertainment (OTC:UBSFF, EPA:UBI) is well positioned to outperform in the long term but continues to see challenges to its revenue-to-employee ratio, limiting the French video game publisher’s ability to achieve profitability with its current execution trends.
In a note to clients on Thursday, the analysts reiterated their ‘Outperform’ rating and 12-month target price of €12.00 per share on the stock ahead of Ubisoft’s second quarter fiscal 2026 financial results on November 13.
They estimate the company’s Q2 net bookings at €450 million but believe that figure could fall short given what they called unspectacular performance from Rainbow Six, poor user reviews for Claws of Awaji, the Assassin’s Creed Shadows DLC, and a lack of releases in the quarter.
The analysts noted that Ubisoft’s recent stock price performance has been impacted by the company’s lack of clarity concerning its upcoming releases and questions around the shareholder benefit of Tencent’s investment.
The Wedbush equity research team added that Ubisoft’s guidance indicates fiscal 2026 as being a restructuring year, with only two confirmed releases on the horizon, Anno 117 and Prince of Persia: The Sand of Time remake, as well as a couple of mobile games expected out this year.