Electronic Arts price target lowered to $139 from $164 at Wedbush

Wedbush analyst Nick McKay lowered the firm’s price target on Electronic Arts to $139 from $164 and keeps an Outperform rating on the shares. The firm notes EA substantially lowered guidance for the fiscal year due to its delay of Star Wars Jedi: Survivor out of the year, Apex Legends underperformance coupled with the sunsetting of Apex Legends Mobile, and the implications of certain Q3 trends, including an underwhelming marketplace for certain of its new releases. Wedbush’s bias is that the company has set the bar sufficiently low that it will once again begin to over deliver on future earnings calls, and thinks that the lowered guidance reflects a trough in earnings for the company for the next several years.