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EA shares drop after analyst expresses Old Republic concerns

"Initial sales appear to be below expectations"

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.

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[ SOURCE: MarketWatch ]