It is no secret that Ubisoft (UBI.PA) has had a rough few years. In 2022, the stock price was down almost 40%. However, the decline had started well before. Ubisoft’s market value has lost about 73% since its peak in mid-2018.
Ubisoft has quite a few projects in the works and they need them to do well. Skull & Bones is a much delayed game that is scheduled for release this March. Avatar: Frontiers of Pandora is an open-work game set in the universe of James Cameron’s Avatar movie. A similar partnership with Disney/Lucasfilms will see a game (games?) based on the Star Wars license. There is also expected to be quite a bit of activity with the Assassin’s Creed franchise.
The problem with Ubisoft is the company is very dependent on its new product release, as they don’t have a major live services component to their games. Trying to predict what titles will actually launch and whether they will be any good is difficult with Ubisoft.
Despite all these concerns, Ubisoft stock was included in the DFC Intelligence Video Game Stock Portfolio launched January 3, 2023. The rationale is that if Ubisoft has some hits the stock will soar. If the company continues to disappoint, the stock will decline but it would be a strong acquisition candidate.
Overall analysts are predicting Ubisoft stock price to grow by over 50%. DFC believes it could grow even higher but also cautions things could get worse before they get better.