BMO Capital analyst Brian Pitz raised the firm’s price target on Electronic Arts (EA) to $210 from $166 and keeps a Market Perform rating on the shares after the company agreed to be taken private at $210 per share by a consortium of Silver Lake, Affinity Partners, and the Saudi PIF. The two-tier break fee could incentivize a strategic partner who could offer more complementary benefits and long-term growth potential to come in over the top, and the firm also questions the durability of all the IP licenses given the potential for change-of-control provisions, as wholly-owned IP only represents approximately a third of EA’s bookings, the analyst tells investors in a research note.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on EA:
- Electronic Arts price target raised to $210 from $167 at UBS
- Hold Rating on EA Amid Strategic Acquisition by PIF, Silver Lake, and Affinity Partners
- Electronic Arts downgraded to Sell from Buy at DZ Bank
- Electronic Arts downgraded to Hold from Buy at Jefferies
- Electronic Arts moved to No Rating at BofA after go-private deal