Wedbush: Ubisoft Stock Maintains 'Strong Buy'

Anticipating Ubisoft's Thursday report on its fiscal Q4 2008 sales, market analyst firm Wedbush Morgan's Michael Pachter indicates that the firm will maintain its guidance on Ubisoft's investment rating as a "Strong Buy," expecting the publisher to regularly “beat and raise” its guidance. A Wedbush research note sent out today conveys its belief that the Ubisoft shares will continue to appreciate, its strong lineup of titles enabling the company to "deliver upside" in the 2009 financial year. The firm is confident with the company's current investment rating: "Maintaining STRONG BUY and our €75 ($120) price target, which reflects a forward P/E multiple of 25x our expected average EPS over the next two years. " Ubisoft's recent acquisition of the Tom Clancy name rights and the company's strong software sales should improve operating margins and provide momentum for catalog sales in the 2009 financial year. Said Michael Pachter, "We expect the company to report revenue in line with our estimate of €214 million ($341 million), compared with guidance for €210 million ($335 million) and the consensus estimate of €212 million ($338 million). At the end of March, Ubisoft significantly raised its FY:08 guidance due to continued strong sales of Assassin’s Creed, its 'casual' games, and new release Tom Clancy’s Rainbow Six Vegas 2." Ubisoft will report its fiscal Q4 2008 sales on April 24 after the close of the French Stock Exchange.