EA: Jefferies rematins neutral towards stock

(CercleFinance.com) - An analyst at Jefferies today said that he is maintaining his "hold" rating on the EA (Electronic Arts) stock, along with a target price of 90 dollars.


"We note that EA's game [Star Wars presented this weekend] is being developed using the Unreal engine. This is significant, as it means EA has to pay a 5% rev share to Fortnite's developer Epic. We note that if EA continues to eschew their in-house Frostbite engine going forward, it could pressure profitability. In addition, press reports suggested that gamers are frustrated with the initiated content releases for Apex, which may impact its momentum and revenue generating potential."



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