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Electronic Arts shares (EA – Get Report) fell after analysts at MKM Partners declassified Buy's stock in neutral.
The stock was down 1.69% to $ 92.80 the stock.
Despite the downgrade, MKM Partners' Eric Handler has increased his EA price target from $ 92 to $ 100. The stock has increased about 20% this year.
"The initial success of Apex Legends in 4QFY19 has probably created a false head where the upward revisions of the road forecast for the FY20 could be too much, too early because the commitment of the players has dropped significantly over the past 10 weeks, "Handler said .
Upcoming release Star Jedi Wars: Fallen Order Handler noticed that sales could be strong, but monetization in the game still poses problems. "Our main problem with the game is that as a story-based game, it will not have multiplayer components or microtransactions, eliminating recurring revenue spending," he said. .
Electronic Arts Announces Fourth Quarter Results for Fiscal Year 2019 May 7 Analysts surveyed by FactSet are looking for earnings per share of 99 cents and a business figure of $ 1.22 billion.
The downgrade comes as Cowen has upgraded its Take-Two Interactive rival (TTWO – Get Report), which, according to the bank, is expected to experience the largest increase in sales thanks to the upgrade and to the purchase new consoles by the players.
The action Activision Blizzard (ATVI – Get Report) declined Thursday after-market after posting weak forecasts.
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