EA-- “Get in the game” stock cut to neutral
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Electronic Arts Inc. (NASDAQ:EA) slipped 1.1% in early trading after MoffettNathanson downgraded the American video game company to neutral after just four weeks ago they upgraded the stock with a Buy rating.
MoffettNathanson announced: âWeâre downgrading EA from Buy to Neutral, but raising our PT to $147 (from $141).â
It was less than a month ago that EA was upgraded to Buy with the notion that it was relative stability, had a quality balance sheet, plenty of free cash flow generation, and a meaningful discount to its historical valuation multiple ranges offered a great set-up for investors looking for a safe haven.
However, things quickly changed for the independent research house as they stated: âBut after a +22% absolute move in the stock, and +21% outperformance relative to the market, we canât help but feel like the proverbial dog that unexpectedly caught the car it was chasing.â
EA currently finds itself trading slightly in the green on the year +0.6%, but lower on a one-year basis of -6.8%.
Moreover, Electronic Arts has announced the sequel to its Star Wars Jedi: Fallen Order games. The Respawn Entertainment studio and Lucasfilm Games have announced a 2023 launch for Star Wars Jedi: Survivor.