UPDATE: Benchmark Company Initiates Electronic Arts at Buy on Multiple Positive Factors

In a report published Friday, Benchmark Company analyst Mike Hickey initiated coverage on Electronic Arts EA with a Buy rating and $30.83 price target.

In the report, Benchmark Company noted, “Key themes drive our enthusiasm for the Company's forward performance opportunity: a high quality narrow product slate, near term market growth expectation, digital product / market growth and effective cost controls. The Company's digital portfolio should continue to benefit from the proliferation of connected devices and premium digital online HD content over mega franchises including FIFA and Battlefield. We anticipate the Company's core game portfolio should continue to benefit from strong quality over an emerging / expanding HD installed base. The Company has a compelling pipeline of core games for fiscal '14 release period including: FIFA, Battlefield 4, Madden and Sims 4. The Company noted positive pre-order sales trends for Battlefield 4, which we believe reflects a positive market share shift from competition within the FPS category, more than offsetting negative current gen pre-order trends on established franchises, as they have identified within their EA sports portfolio outside of positive data from FIFA. We believe platform transitions can disrupt traditional market share balances and position a high quality game over an extended sales curve as the initial installed base builds, both of which could balance favorably for the Company's Battlefield 4.”

Electronic Arts closed on Thursday at $26.53.