UPDATE: Bank of America Lowers Electronic Arts' PO
According to a research report published this morning, Bank of America lowered Electronic Arts' (NASDAQ: EA) PO from $22 to $19.
Bank of America commented in the report, "F4Q rev/EPS of $977mn/$0.17 was inline with consensus at $963mn/$0.18. Digital grew a solid 59% y/y to $425mn vs. our $366mn driven by full-game downloads of Star Wars (2.4mn total units sold to-date) and Mass Effect 3 (retail sales tracking in-line), while distribution missed our ests. Star Wars active subs at 1.3mn were down from 1.7mn in March, but FY13 EPS guide at $1.13 (midpoint) vs. Street at $1.16 was less-negative than we feared. We think the aftermarket selloff was a bit of an over-reaction as Star War negativity should level off."
Bank of America maintains its Neutral rating on Electronic Arts, which is currently trading at $14.05.
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