J.P.Morgan downgrades Electronic Arts, SciPlay on shifting consumer focus

SciPlay

16/12/2020 11:39

** J.P.Morgan downgrades video gaming companies Electronic
Arts  EA.O  and SciPlay  SCPL.O  to "neutral" from "overweight",
citing likely shift by consumers to other activities and as
competition intensifies
    ** A broad distribution of COVID-19 vaccines will put the
slot-based games and their providers at a greater risk - JPM
    ** Consumers likely to spend more time and money on sectors
like travel and leisure that were closed so far or still
partially restricted - brokerage
    ** Sees it difficult for EA to maintain engagement within
its key sports franchises/"Apex" and launch a new "Battlefield" 
    ** J.P.Morgan upgrades Zynga  ZNGA.O  to "overweight" from
"neutral"; sees co better positioned than peers
    ** Says, stock performance next year will be "driven by
execution across core franchises and investor enthusiasm for the
new game pipeline," factors that would favour ZNGA
    ** Brokerage also initiates Take-Two Interactive Software
 TTWO.O  with "neutral" rating and $210 PT as co currently
trades at a substantial premium to its closest peers

 (Reporting by Tapanjana Rudra)
 ((Tapanjana.Rudra@thomsonreuters.com;))