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Wedbush: Sell-off is overdone, future is bright for EA

Published 01/02/2018, 04:08 PM
© Reuters.  Wedbush: Sell-off is overdone, future is bright for EA
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  • An online brouhaha over the launch of tentpole game Star Wars: Battlefront II isn't going to dent prospects for Electronic Arts (NASDAQ:EA), Wedbush says, reiterating an Outperform rating.
  • Sales are going to bounce back for that game and the company has a strong pipeline for the coming year, writes analyst Michael Pachter.
  • Though domestic physical sell-through on Battlefront II was weaker than expected (following widespread criticism over the release's approach to in-game purchases), "we believe that the loyalty of the Star Wars fan base, the game's appeal as a holiday gift, and the release of Star Wars: The Last Jedi on Dec. 15 will result in sales of the game bouncing back in the December retail month," Pachter says.
  • Meanwhile, the stock fell 12% during the last two months of 2017, an overdone sell-off, he writes.
  • Meanwhile, upcoming titles for the company in a "loaded" lineup include Anthem, FIFA World Cup, another Battefield follow-up and Titanfall 3.
  • Shares rose 4.2% today.
  • Now read: Electronic Arts And Activision Blizzard (NASDAQ:ATVI) Offer Hedge For Traditional Sports Investments


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