(Bloomberg) -- The prospect of a year stacked with new game releases, including Take-Two Interactive Software Inc.’s long-awaited Grand Theft Auto VI, has caused a bull of Ubisoft Entertainment SA to end their positive call.
BNP Paribas Exane downgraded the stock to neutral on Wednesday, having maintained an outperform recommendation since September last year.
The upcoming game release schedule looks increasingly crowded and that’s a concern for Ubisoft over the next two years, according to analyst Nicolas Langlet.
Langlet cut his price target on the stock by more than half to €14.50, a new low among analysts tracked by Bloomberg. Ubisoft shares sank as much as 11% on Wednesday to €11.85, to the lowest price since October 2014.
Cantor Fitzgerald also lowered its rating on the stock this week. Analysts cited mixed reviews from players on Ubisoft’s new release Star Wars Outlaws following last month’s debut, and say the game is likely to underperform expectations.
--With assistance from Joe Easton.
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