Deutsche Bank Reiterates Electronic Arts Sell Rating, $13 PT (ERTS)

Deutsche Bank reiterated its Electronic Arts ERTS Sell rating and $13 price target in a research report published today. In the report, Deutsche Bank states, "We believe that EA sold in 10mn units of MoH/N4S in F3Q, whereas we estimate sell-through of 6mn, implying a healthy amount of channel inventory (mainly Europe) that needs to clear or be marked down (up to $75mn in gross profit impact in F4Q). To compensate, EA shifted 3 titles into F4Q $100+ mn in revs) to achieve its F4Q, yet risk still remains in the March qtr. As such, we remain sellers and see risk on revs/GM for F4Q." Shares of Electronic Arts were at $17.22 in pre-market trading at the time of posting, up 10.24% from Tuesday's market close.