UPDATE: Bank of America Merrill Lynch Downgrades Electronic Arts to Neutral, Lowers PT

In a report published Wednesday, Bank of America Merrill Lynch downgraded its rating on Electronic Arts

from Buy to Neutral, and slightly lowered its price target from $16.00 to $15.00. BofA Merrill Lynch noted, “We are lowering our rating on EA to Neutral from Buy and lowering our price objective to $15, down from $16, based on 14x our FY13 EPS estimate of $1.08, comparable to our PO multiple on Activision. While the stock has sold off recently on Medal of Honor concerns, EA is up 15% from lows on 7/31 (vs. S&P 500 up 5%) and we have moved past the potential benefit of EA Sports titles (Madden and FIFA) releases. While early FIFA pre-order data is a positive, the period following the Medal of Honor release on 10/23 may be difficult for the stock given pre-order charts are highlighting other upcoming titles (incl. Halo, Call of Duty, Assassin's Creed, and Dishonored) in a very crowded holiday quarter.” Electronic Arts closed on Tuesday at $12.68.