BMO Capital Downgrades Electronic Arts (EA) to Market Perform
BMO Capital analyst Gerrick Johnson downgraded Electronic Arts (NASDAQ: EA) from Outperform to Market Perform with a price target of $125.00 (from $150.00).
The analyst comments "We are downgrading shares of Electronic Arts (EA) to Market Perform from Outperform with a revised target of $125 (from $150). We are reducing our valuation multiple to 17x our FY25 EPS estimate from 20x to account for a reduction in implied "takeout premium" owing to the UK Competition and Markets Authority's (CMA) decision to block the Microsoft/Activision Blizzard deal. We also think a reduction is appropriate given lingering concerns about EA's mobile strategy and general pressure on video game spending. We see EA shares as fairly valued."
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Shares of Electronic Arts closed at $125.12 yesterday.