Report
Neil Macker
EUR 101.80 For Business Accounts Only

Ubisoft Share Price Remains Inflated Due to Potential Vivendi Bid; Raising FVE to EUR 30

We are raising our fair value estimate for Ubisoft to EUR 30 from EUR 24 as we update our estimates to better reflect the strong release slate for both fiscal 2017 and 2018, as well as the operating leverage that the firm is gaining from the revenue shift to digital downloads and microtransactions. Ubisoft has improved its operating margins from 4% in fiscal 2012 to 14% in fiscal 2017, and we project that the firm will be able to expand its margins to 21% by fiscal 2022 as the percentage of reve...
Underlying
Ubisoft Entertainment SA

Ubisoft Entertainment is an international independent developer, publisher & distributor of video games. Co. centers its business activities on developing, publishing & distributing video games for portable & home consoles, the PC, smartphones & tablets in both physical & online formats: high-definition with games for Xbox 360, PlayStation®3 & PC; casual with games for Nintendo®, KINECT & PlayStation®3 Move; and online for on-line games. Co.'s catalogue includes various types of games: Action/Adventure, Shooters, Sports, Strategy, Simulation, TV and Movie licenses, Games for everyone and Driving. Co.'s trademarks include Assassin's Creed®, Rainbow Six® Vegas 2, and Rayman Raving Rabids®.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Neil Macker

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