Brean Capital Sees Good Things Ahead For Electronic Arts
In a report published Monday, Brean Capital analyst Todd Mitchell reiterated a Buy rating and $40.00 price target on Electronic Arts (NASDAQ: EA).
In the report, Brean Capital noted, “The new consoles are selling better than was expected at their launch and to date software attach rates have been higher than expected. As a result, we believe EA, and the other video-game developers, are well positioned for upside to fiscal 2015 guidance. Post-E3 we had some concerns about the finish of more than a few EA titles, which seemed to reveal a negative impact of EA's efforts at cost containment. However, better-than-expected sales of EA Sports titles and the strong follow on sales of Titanfall are telling us a different story.
"Should current demand patterns remain constant, we see EA having little problem in plugging its tough comp to Battlefield 4 in fiscal 2014. Key titles to watch include Battlefield Hardline, which we believe is well segmented in the market, and Dragon Age, which we are less comfortable with. If industry fundamentals remain intact, and EA continues to execute, we believe the market could drive multiple expansion. In the interim, we reiterate our BUY rating and $40 price target.”
Electronic Arts closed on Friday at $38.38.
Latest Ratings for EA
|Jun 2015||Mizuho Securities||Initiates Coverage on||Buy|
|Jun 2015||Brean Capital||Maintains||Outperform|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.