Stifel Nicolaus reduces its price target from $16 to $15 on Neutral-rated Electronic Arts EA on concerns on key games and weak sales.
Stifel Nicolaus says, "EA currently has 1.3 million subscribers for SWTOR, which is down from 1.7 million last quarter. SWTOR has sold through 2.4 million units, but only about half have remained as subscribers. While EA stated that current subscribers have stabilized and that the quality of those remaining were good, we are cautious given the high dropout rates so relatively recent to game
launch. …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 has continued so far in 2012 (-28%) and is likely to continue due to new consoles (the WiiU expected this holidays and speculation of a new Xbox 360 and PS4 in 2013)."
EA closed at $15.13 on Monday.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in