Piper Jaffray has cut forecasts for Electronic Arts (EA +0.6%) and substantially trimmed its price target on the stock amid recent game challenges.
The firm pointed to the monthlong delay of the release of Battlefield V, as well as disappointing results so far from its latest FIFA soccer title and a setback on a Star Wars mobile game.
"We would not be surprised if initial FY20 guidance is below our downwardly revised numbers, as it’s likely EA will want to include a layer of conservatism to allow for upside," Piper says. But there could be a silver lining if current FIFA weakness adds to a "tough" 2019 and makes for easier comps with the 2020 releases. (h/t Bloomberg)
It's still Overweight on EA but cut its price target to $105 from $148, reducing implied upside to 26.5%.
Subscribe for full text news in your inbox