This post was originally published on this site
https://i-invdn-com.investing.com/news/LYNXMPEA9R0ZD_M.jpg
MoffettNathanson analyst Clay Griffin downgraded the rating on Electronic Arts (NASDAQ:EA) shares to Neutral from Buy with a $147.00 per share price target, up from the prior $141.00.
The downgrade call comes just four weeks after the same analyst raised his recommendation on EA stock to Buy.
“We upgraded EA to Buy with the thesis that its relative stability, clean balance sheet, ample free cash flow generation, and a meaningful discount to its historical valuation multiple ranges offered a great set-up for investors looking for a safe haven,” Griffin told clients in a note.
So, why the downgrade now? Griffin made a move after EA shares soared over 22% recently, outperforming the market by 21%.
“We can’t help but feel like the proverbial dog that unexpectedly caught the car it was chasing,” Griffin added.
The analyst remains positive on the fundamentals but sees the rich valuation as a key reason why he is moving back to the sidelines.
EA shares are down around 2% today.
