Market Overview

UPDATE: Brean Capital Reiterates On Electronic Arts On Strong Evidence Of Efforts To Improve Financial Results

Electronic Arts' EA SPORTS and FIFA Extend Licensing Agreement Until December 31, 2022 Announces Begins Beta Testing Of 'Battlefield Online'

In a report published Wednesday, Brean Capital analyst Todd Mitchell reiterated a Buy rating on Electronic Arts (NASDAQ: EA), and raised the price target from $38.00 to $40.00.

In the report, Brean Capital noted, “We believe Electronic Arts seeks to overcome a difficult comparison to the release of Battlefield 4 in F2014 with a F2015 line-up geared toward profitability and higher digital revenue with Battlefield: Hardline, a cops and robbers redux of the Battlefield franchise, Dragon Age: Inquisition and its annual EA Sports line-up, now including UFC.

"We have tweaked our estimates only modestly after E3 and continue to be ahead of guidance with our outlook for a 4% increase in Revenue to $4.2 billion and non-GAAP EPS of $1.90. Underpinning our expectations is Battlefield Hardline, a well segmented urban-themed multi-player title, and a combination of EA Sports releases, to comp Battlefield 4 in F3Q14. Moreover, we believe the company has set itself up for increased digital contributions from EASports Ultimate Teams, with FIFA particularly strong, and full-game downloads from both Origin and the consoles.

"While we feel the group is due for a bit of a pause, given what appears to be strong underlying fundamentals for the industry, EA's well segmented line up at E3, and its strong financial management, we are bumping our TP to $40 from $38 and reiterate our Buy rating.”

Electronic Arts closed on Tuesday at $36.36.

Posted-In: Brean Capital Todd MitchellAnalyst Color Price Target Analyst Ratings


Related Articles (EA)

View Comments and Join the Discussion!