Credit Suisse Upgrades Electronic Arts to Outperform from Neutral, Lowers PT to $29.00 from $30.00

In a report published Tuesday, Credit Suisse analyst Stephen Ju upgraded Electronic Arts, Inc. EA to Outperform from Neutral, lowering its price target to $29.00 from $30.00. According to the report, the target price adjusts modestly lower to $29 as FY14 Adj. EPS estimate is decreased to $1.26 vs. $1.41 prior. “Our positive change in stance is not about the December quarter report but rather on the following three factors – hence we view weakness on softer- near-term data points from the hardware transition as a buying opportunity given: 1) expected continued portfolio rationalization adds additional comfort to cost containment/discipline agenda, 2) better visibility on long-term product roadmap, 3) more attractive valuation given recent pullback on Battlefield development-related concerns,” the report noted. EA closed Monday at $22.38 with shares trading down at 2.74 percent.