Sterne Agee Has Buy on Electronic Arts
Sterne Agee is out with a research report on Electronic Arts, Inc. (NASDAQ: ERTS) and it has a Buy rating and a $27 price target on shares.
In a note to clients, Sterne Agee writes, "Given the success of Madden NFL 12, FIFA 12, NHL 12 and The Sims Social during the quarter, we expect F2Q results to be towards the upper end of management's revenue/EPS guidance of $925-$975M/($0.13) – ($0.03). Additionally, for F3Q, strong per-orders for Battlefield 3 (releasing tomorrow, 10/25), the expected launch of Star Wars MMO (12/20), and other key titles such as Need for Speed, bode well for the near- term performance of the stock. Overall, we remain favorable on ERTS and believe management's goal of doubling operating margins (from 9% to 18%) in the next 3 to 4 years is achievable. Reiterating Buy and $27 target."
Shares of ERTS closed at $23.58 yesterday.
