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Wedbush Morgan’s Michael Pachter has heavily dropped his 12-month price target on EA, heading south from $53.50 to $38.

The analyst is maintaining a “strong buy” rating on the firm.

Pachter also pulled back his EPS estimate for EA, down from $1.70 to $1.40.

The moves come following the announcement of both increased losses and sales in the second quarter from EA yesterday, and confirmation that the publisher is to shed 6 percent of its workforce.