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."

For an analyst ratings summary and ratings history on Electronic Arts click here. For more ratings news on Electronic Arts click here.

Shares of Electronic Arts closed at $125.12 yesterday.

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