Goldman Sachs Resumes Coverage On Electronic Arts With Neutral Rating

According to Goldman Sachs, Electronic Arts (NASDAQ: ERTS) coverage is resumed at Neutral.

Goldman Sachs reported that it resumes coverage of Electronic Arts (EA) with a Neutral rating and $22 12-month price target. “We believe EA can achieve 15% or better operating margins in the medium term vs. 8% today via a mix shift from 20% to 40%+ of revenue from digital, a development budget that chases fewer packaged goods titles, and good but not category killing success for its flagship franchise releases this fall, Battlefield 3 and Star Wars: The Old Republic. With shares up 20% this year, we believe valuation discounts successful launches of Battlefield 3 and The Old Republic.”

Electronic Arts closed yesterday at $19.95.