Skip to content
Subscriber Only

S&P Picks and Pans: EA, Take-Two, Genentech, GTX, Jackson Hewitt

Analysts' takes on stocks in the news Monday

S&P DOWNGRADES OPINION ON SHARES OF ELECTRONIC ARTS TO SELL FROM HOLD (ERTS; 47.67):

We view cautiously ERTS's unsolicited offer to acquire Take-Two Interactive (TTWO) for $26 per share in cash. TTWO's profitability has been inconsistent, with most of its earnings from the Grand Theft Auto franchise. We believe ERTS would have difficulty keeping key employees, including Grand Theft developers, following a merger. The apparent eagerness to accomplish the deal raises questions for us about ERTS's progress in developing internal intellectual property. We are lowering our target price by 3 to 45 to reflect increased risks and lower industry multiples. - J.Yin