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Fly News Breaks for January 17, 2019
EA
Jan 17, 2019 | 07:01 EDT
Jefferies analyst Timothy O'Shea downgraded Electronic Arts to Hold from Buy and lowered his price target for the shares to $95 from $139. The company's key profit engine Ultimate Team is plateauing, O'Shea tells investors in a research note. Further, with a string of "mixed-reviewed" non-sports games, namely Mass Effect, Need for Speed and Star Wars Battlefront II, Electronic Arts "has a lot to prove as it brings a slate of unproven titles to market in 2019," says the analyst. He expects year-over-year operating income margin compression of 300 basis points in fiscal 2019 and views consensus earnings estimates as aggressive.