Electronic Arts: shares fall as Jefferies cuts rating
(CercleFinance.com) - Electronic Arts shares fell on Thursday after Jefferies downgraded the video games maker, saying the company's 2019 game lineup relies on "unproven games.
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Jefferies believes growth in FIFA 19 Ultimate Team has plateaued and that margins will compress year-on-year as the football game growth decelerates, it said, downgrading the stock from "buy" to "hold".
The broker cut its full-year earnings estimates for the company for 2020 and 2021 by 7% and 13%, respectively. Jefferies also reduced its target price on the stock from 139 dollars to 95 dollars.
Its shares were down 1.4% at 88.6 dollars on the Nasdaq this morning.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
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Jefferies believes growth in FIFA 19 Ultimate Team has plateaued and that margins will compress year-on-year as the football game growth decelerates, it said, downgrading the stock from "buy" to "hold".
The broker cut its full-year earnings estimates for the company for 2020 and 2021 by 7% and 13%, respectively. Jefferies also reduced its target price on the stock from 139 dollars to 95 dollars.
Its shares were down 1.4% at 88.6 dollars on the Nasdaq this morning.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.