Deutsche Bank Reiterates Sell On Electronic Arts (ERTS)

Deutsche Bank is reiterating its Sell rating on shares of Electronic Arts ERTS and $13 price target.

In a note to clients, Deutsche Bank writes, "For ERTS, our $13 price target is based on 13x FY12E EPS of $0.55 plus $5.88 in cash per share. This multiple is comparable to a group of technology leaders, trading at 12x CY11E earnings. We believe this comparison is warranted as the technology comp group is generally being impacted by the economy and not facing structural challenges as in the case of Electronic Arts. Key industry risks include lack of compelling internal IP games, competition. Specific risks to our PTs are on pages 4 and 5."

Shares of ERTS lost 9 cents yesterday to close at $18.53, a loss of 0.5%.