UPDATE: Sterne Agee Downgrades Electronic Arts to Neutral
In a report published Monday, Sterne Agee Group downgraded its rating on Electronic Arts (NASDAQ: EA) from Buy to Neutral.
Sterne Agee noted, “We are downgrading shares of EA from Buy to Neutral on concerns that the Street's FY13 estimates for EA will prove overly optimistic. We are lowering our FY13 revenue estimate for EA 5% below the Street. We believe some of the valuation premium (~28%) EA has relative to competitor ATVI (Neutral) could disappear. EA does have a more diversified portfolio and is more leveraged to next-gen consoles relative to ATVI. As such, we believe some of the premium will remain.”
Electronic Arts closed on Friday at $14.88.
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Tags: Sterne Agee Group