Deutsche Bank analysts downgraded Electronic Arts Inc. (NASDAQ:EA) to Hold from Buy and lowered their price target on the stock to $125 from $157 amid slower growth and strategic reset.

The downgrade is due to a negative impact on EA's fundamental outlook caused by various factors. These factors include greater macro-related challenges, a reset of EA's mobile strategy, and less new content than previously anticipated for next year.

As a result, the analysts are forecasting lower levels of growth for 2023-2025 compared to previous expectations. EA's initial guidance for 2024 also calls for mid-single-digit topline growth, which is lower than the prior forecast and Street estimate at that time. This implies that EA's net bookings will be around $7.5 billion, which compares to the Street estimate of $8.2 billion.