EA shares drop after analyst expresses Old Republic concerns
20th Jan 2012 | 12:38
EA shares fell 3.8 percent yesterday after Todd Mitchell, an analyst with Brean Murray Carret & Co, expressed "creeping concerns" about the performance of Star Wars: The Old Republic.
According to MarketWatch (via Edge), Mitchell cut his price target on EA stock to from $28 to $22, telling investors: "Specifically, initial sales appear to be below expectations, and casual observation of early play is causing us to rethink our churn assumptions."
EA has "probably" invested close to half a billion dollars in Star Wars: The Old Republic, Cowen & Company analyst Doug Creutz said earlier this week.
The publisher has said that The Old Republic will turn a profit if it manages to retain half a million subscribers, and claimed over Christmas that the title is the fastest-growing subscription MMO in history.
