UPDATE: Bank of America Downgrades Electronic Arts on Multiple Challenges Ahead
In a report published Thursday, Bank of America analyst Justin Post downgraded the rating on Electronic Arts (NASDAQ: EA) from Buy to Neutral, and lowered the price target from $36.00 to $35.00.
In the report, Bank of America noted, “Following a solid Titanfall release, we are lowering our rating on EA to Neutral from Buy given our view of fewer catalysts and more compelling content from the competition including Ubisoft, Sony, and ATVI over the next six months. In our opinion, EA has strong FY16 (CY15) growth potential with a Dice developed Battlefield and potentially a new Star Wars title coming and could announce new IP for FY16 at E3 (6/10-6/12), but we do not see any titles (incl. FIFA World Cup) that could lead to big earnings upside in FY15. We are lowering our PO to $35 (from $36) based on 18x (in-line with ATVI) FY16E EPS.”
Electronic Arts closed on Wednesday at $29.98.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.