UPDATE: Brean Capital Reiterates Buy Rating, Raises PT on Electronic Arts Following F3Q15 Review

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 $54.00 to $57.00.In the report, Brean Capital noted, “Last night EA reported much higher-than-expected F3Q14 revenue of $1.43 billion and non-GAAP EPS of $1.22. Upside to expectations was broadly based and reflects both strong industry fundamentals and reinvigorated execution from EA's new management team. EA now projects F2015 revenue of $4.25 billion and non-GAAP EPS of $2.35, an increase from prior guidance but lower than F3Q15 upside, implying a more cautious outlook on F4Q15. We are raising our F2015 estimates to revenue of $4.27 billion and non-GAAP EPS of $2.37, and are biased towards further upside surprises. We are maintaining our F2016 revenue estimates of $4.55 billion, and while we see some risk in FX, we are raising our F2016 non-GAAP EPS estimate to $2.65 from $2.45. We think that EA's multiple has gotten increasingly rich on the back of stronger-than-expected industry fundamental and the company's own outperformance, and while it may seem to be hard to justify in light of expectations for mid-teens EPS growth in F2016, we note that our outlook does not include any potential impact from share repurchases, which could be increasingly material in light of EA's improving FCF characteristics. As a result, we are raising our target price for EA to $57 from $54, and maintain our Buy rating.”Electronic Arts closed on Tuesday at $48.41.