On Thursday, JPMorgan downgraded its recommendation on Ubisoft shares from 'overweight' to 'neutral', with a price target reduced from 46 to 24 euros, following the video game designer's earnings warning the previous day.

In a reaction note, the financial intermediary explains that it prefers to lower its opinion on the stock pending better visibility on the group's upcoming releases.

While it is true that Ubisoft has a solid pipeline, we are lowering our recommendation (...) due to the weakening economic situation, a complicated environment within the sector and the lack of visibility surrounding the schedule of upcoming releases and their possible success', it stresses.

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