That is correct, target is $12 - sorry typo on my part.
But S&P logic below applies to other VG companies (ATVI & TTWO) as well, so why is he picking on EA?
"We think EA would make an unlikely takeover candidate because of the variability of its earnings, which depends largely on a few top-selling games. We think the chance of success on new titles will become more difficult over time, given the decline in the sales of console games."
There are thousands of stocks out there and many of them are consistently profitable and have strong competitive positions. Why spend much time on these companies and instead focus on companies that make money? Are you investors or speculators?
The gaming sector needs to do something other than wait around on old products and hope for a buyout. These guys are sitting on a massive franchise....just not the right delivery method. Still a fan of their product and believe in them long term.