Citigroup Cuts Electronic Arts to Hold from Buy
Citigroup downgraded Electronic Arts (ERTS ) to hold from buy, citing the company's sales prospects.
Analyst Liz Osur expects PC and co-publishing sales growth to be negative this year, among other things. She now thinks overall company sales for the third quarter could be $1.44 billion, up 1%. In addition, she cut her fourth quarter (ending March) sales estimate to $660 million, which is below guidance of $710 million to $810 million, to reflect the fourth quarter's reliance on catalog titles. She advises investors to switch into Activision (ATVI ), which had much better-than-expected business.