Citi analyst Jason Bazinet keeps a Neutral rating on Electronic Arts (EA) with a $173 price target after the Wall Street Journal reported the company is in advanced talks to go private for around $50B. Citi estimates the buyout implies a 16% premium to the stock’s closing price on September 25, or $196 per share. The internal rate of return for the private equity buyers would be low if Electronic Arts’ consensus estimates are accurate, making a possible competing bid unlikely, the analyst tells investors in a research note.
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