UPDATE: Ascendiant Capital Markets Initiates Neutral, $16 PT on Electronic Arts

Ascendiant Capital Markets initiates its coverage on Electronic Arts EA with a Neutral rating and a price target of $16, reflecting concern on weak industry sales and the lack of catalysts in the near term. Ascendiant Capital Markets says, "According to The NPD Group, U.S. video game software sales in 2011 were $9.3 billion (packaged goods only, not including digital games), down 8% from 2010. This weakness is likely to continue due to new consoles (the WiiU expected this holidays and speculation of a new Xbox 360 and PS4 in 2013). As one of the largest video game publishers, Electronic Arts is likely to be negatively affected if this trend continues." EA closed at $15.90 a share yesterday.