The stock was falling 1.69% to $92.80 a share.
Despite downgrading his rating, MKM Partners' Eric Handler did increase his price target on EA from $92 to $100. The stock has run up roughly 20% this year.
"The initial success of Apex Legends in 4QFY19 likely created a head fake where early, upward revisions of FY20 Street forecasts may have been too much, too soon as player engagement has meaningfully declined in the last 10 weeks," Handler said.
Upcoming release Star Wars Jedi: Fallen Order may see solid sales, Handler noted, but there are still challenges with in-game monetization on that game. "Our key issue with the game is that as a story-driven game it will not have a multiplayer component and there will be no microtransactions, thus eliminating recurrent revenue spending," he said.
Electronic Arts reports fourth quarter earnings for its fiscal year 2019 on May 7. Analysts polled by FactSet are looking for earnings per share of 99 cents and revenue of $1.22 billion.
The downgrade comes as Cowen upgraded rival Take-Two Interactive (TTWO) - Get Take-Two Interactive Software, Inc. Report , which the bank deems poised to see the largest sales increase as gamers upgrade and buy new consoles.