Barclays cuts Electronic Arts (NASDAQ:EA) from Overweight to Equal-Weight and lowers the target from $104 to $99, citing limited upside compared to its peers.
Analyst Deepak Mathivanan notes that most of EA's EPS growth next year will come from buybacks not business fundamentals.
The analyst thinks "investors will need to see a couple of successful title releases before EA’s multiple reverts back to its historical mean."
EA shares are down 1.4% pre-market to $94.50. The company has an Outperform average Sell Side rating.
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