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.
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.
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