Electronic Arts will see sales of its Star Wars game rebound, according to analysts covering the stock.
California-based investment firm Wedbush Securities has reiterated its outperform rating on the shares, claiming sales of Electronic Arts´ Star Wars Battlefront II game likely firmed over the Christmas period following a shaky start earlier in 2017.
"Although Star Wars Battlefront II had a weaker-than-expected debut in terms of its domestic physical sell-through, we believe that the loyalty of the Star Wars fan base, the game's appeal as a holiday gift, and the release of Star Wars: The Last Jedi on December 15 will result in sales of the game bouncing back in the December retail month," said Wedbush in a research update for investors this week.
Wedbush also claimed that the recent sell-off in Electronic Arts´ shares had been “overdone.” The shares have lost around 11% since early October.
Lacklustre third-quarter guidance from Electronic Arts has been exacerbated by criticism of the Star Wars game.
Along with optimism over a rebound for the latter game, Wedbush is also upbeat on the prospects for the company´s pipeline of upcoming game launches, which includes titles such as "Anthem," "FIFA World Cup," its next "Battefield" game and "Titanfall 3."
Wedbush has a price target of $136 on the Electronic Arts´ stock, representing about 27% upside on the current share price of $107.