Ubisoft Stock Bounces Back 7.57% Mid-Session After Previous Day's Collapse
Ubisoft Entertainment's stock shows a technical rebound of 7.57% at 4.29 euros this Friday, January 23, mid-session, following its worst historical performance the previous day with a nearly 40% drop. This movement occurs as Alphavalue downgrades its recommendation to 'sell' today, with a target reduced from 9.35 to 4.10 euros, in the wake of the drastic revision of financial targets and major restructuring announced by the group on Wednesday.
Opening Performance and Market Reaction
Ubisoft Entertainment's stock opened this Friday, January 23, at 4.29 euros, up 7.57% from Thursday's close of 3.99 euros, after experiencing its worst historical session the previous day with a plunge of nearly 40%. The share of capital traded reached 1.92%, indicating sustained but lesser activity than the previous session, which had exceeded 4.5%. This upward movement is part of a context of extreme volatility, with a one-month volatility indicator at 42.71, reflecting investor uncertainty. However, the stock remains significantly down over recent periods, showing a decrease of 36.84% over seven days and 61.49% over one year. Technically, the price remains well below its moving averages: the 50-day moving average is at 6.32 euros and the 200-day at 8.56 euros, confirming a fundamental downward trend. The nearest resistance threshold is at 6.12 euros, 42.7% above the current price, while the immediate support at 3.99 euros corresponds to the previous day's low. The Bollinger Bands, ranging between 5.08 and 6.94 euros, indicate that the stock is moving outside its usual fluctuation zone, a sign of an abnormal movement.
Analyst Revisions and Market Adjustments
This technical rebound follows a series of particularly severe analyst revisions. Alphavalue downgraded its recommendation from 'buy' to 'sell' this Friday, January 23, lowering its price target from 9.35 to 4.10 euros, indicating a further downside potential of 4.4% from the current price. This revision follows those by Kepler Cheuvreux on Thursday, which lowered its target from 7 to 5 euros with a 'reduce' recommendation, and BMO Capital Markets, which lowered it from 14 to 10 euros while maintaining an 'Outperform' opinion. These adjustments come after the announcement on Wednesday, January 21, of a major organizational overhaul around five Creative Houses specialized by game genre, accompanied by the cancellation of the development of six games including the remake of Prince of Persia: The Sands of Time. The group also revised its 2025-2026 forecasts. Ubisoft also aims for an additional fixed cost reduction program of 200 million euros over two years, after already closing its studios in Halifax and Stockholm. The group's valuation remains at about 606 million euros, down from more than 1.5 billion a year earlier.
