TRADING CALL – BUY UBI FP into numbers, +15% upside short term, +50% long term

The stock has come all the way from EUR 85 to around EUR 60-65 since February’s guidance cut as analysts have cut projections which has left the stock around the March 2020 lows despite company being in the right industry in Covid times

We see the move as overdone and the current consensus as too conservative with only three launches set for next year, margins set at the same level as the February guidance cut and revenue growth set at a fairly conservative level

Potential upside catalyst tomorrow could be a more aggressive timeline for releases or added releases and revenue growth

From a valuation perspective we see a 10% upside to our DCF valuation and a 50% upside on a peer basis which highlights how UBI has been a laggard