Eric Sheridan of Goldman Sachs downgraded Electronic Arts to Neutral (NASDAQ:), with a target price of $145.00 per share.

“We see EA as a fast growing company with long term margin potential and well positioned to take market share going forward. We see growth mostly driven by their core portfolio, mobile strategy, international expansion, M&A opportunities and organic projects, and long term EBITDA margin expansion to be realized in the out years. With a newly appointed CFO and our own estimates below the Street in the coming years, we are looking for greater clarity on the path for growth and margin trajectory over the long term,” Sheridan said in a client note.

Also, Roblox (NYSE 🙂 was rated Neutral by the analyst with a Target Price of $50.00. This is a decrease from $108.00.

“We still see Roblox as growing above industry levels in terms of revenue with a strong long term margin potential. Roblox is likely to see an increase in bookings via DAU expansion. It will go from $2.7bn to $6bn between 2021 and 2026. That’s a 17% annual CAGR. A mixture of putting the near term headwinds behind the company coupled with continued strong management execution could drive the share’s risk/reward to be more constructive.”

Playtika (NASDAQ:) is also downgraded from Buy to Neutral with a $22.00 per share price target while Ubisoft (OTC:) is downgraded to Sell from Neutral.

Stocks in Roblox and EA fell 3% and 2.2% premarket Tuesday.

By Senad Karaahmetovic