JP MORGAN SAYS :
* We have been too cautious on the company’s cash generation ability over the next years
* We think Ubi can deliver consistent positive free cash flow over the next few years
* Potential upside resulting from
a) increasing digital sales
b) new console cycle
c) Ubi’s ability to leverage its franchises
* Ubisoft offers attractive free cash flow yield of 8,7% 2015 (E) and 11,4% 2016 (E).
* Also, strong sales momentum Watch Dogs, Assassin’s Creed and Far Cry
* Strong 2016 slate with potential to expand its number of successful games franchises
* Ubi might benefit from higher potential back catalogue sales
* Moreover there will be FX benefits (exchange rates)
* Analyst says : « while we have missed substantial upside in Ubi shares in 2014, we think there still is still MUCH FURTHER TO GO », hence the upgrade from « hold » to « overweight » and the increase in price target of 60%, from € 11,5 to € 18,5
