Xilam shares opened lower on Monday, continuing to fall after a warning that saw the share price plunge by more than 50% on Friday.

A month after publishing disappointing half-year results, the French animation studio announced on Thursday evening that it was now anticipating lower sales in 2024.

The company has also suspended the objectives of its strategic plan, which targeted revenues of 80 million euros by 2026.

In a press release, the group founded by Marc du Pontavice justified its caution by the contraction in orders from US streaming platforms in the children's segment.

'(We) are beginning to have strong doubts about (1) the group's short- and medium-term growth potential and (2) its ability to combine renewal and value creation', Euroland analysts worried this morning.

As a result, the research firm has downgraded its recommendation on the stock to 'neutral' from 'buy', with a price target revised downwards from 30 to eight euros.

In its note, the Paris-based brokerage firm considers that 'the company's investment thesis and valuation are very strongly impacted by this news'.

Euroland also deplores the 'almost total' absence of catalysts for the stock over the next 12/18 months, apart from a possible technical rebound.

On the Paris Bourse, Xilam shares failed to recover on Monday morning, shedding a further 5% after seeing their share price plummet by more than 58% on Friday alone.

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