UPDATE: Brean Capital Reiterates on Electronic Arts on F4Q14 Preview

In a report published Friday, Brean Capital analyst Todd Mitchell reiterated a Buy rating on

, and raised the price target from $32.00 to $33.00. In the report, Brean Capital noted, “Positioned well for next gen uptake and margin expansion. We look for EA to report in-line or better results in F4Q14 and carry momentum from 2014 into 2015 with a full roster of games for a market eager for next gen software. Pent-up demand drove Titanfall to the top selling title in March despite being available exclusively on the Xbox One, and reportedly doubled sales of the console in the U.K. We look for EA to build up this strength with its lineup of next gen sports titles, including UFC (June), Madden NFL (Aug.) and FIFA (Sept.) through the fall, followed by a host of other anticipated releases. "In addition to solid top-line growth, we expect EA to report a 400 b.p. improvement in operating margins to 14% in fiscal 2014 from 10% in fiscal 2013. Our initial estimates for fiscal 2015 are for $4.1 billion in net revenue and non-GAAP EPS of $1.55. We are raising our target price to $33 from $32 and reiterate our Buy rating.” Electronic Arts closed on Friday at $28.10.