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UPDATE: Monness Crespi Hardt Upgrades Electronic Arts to Neutral Following Evaporation of Catalysts

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, Monness Crespi Hardt analyst Bill Lennan upgraded the rating on Electronic Arts (NASDAQ: EA) from Sell to Neutral.

In the report, Lenna noted, “A series of earnings misses, guide-downs, disappointing games, and a CEO departure (to name a few) have been insufficient to stop the must-own-this-for-the-new-consoles trade. EA's initial FY14 EPS guidance of $1.20 was well above our $0.78 estimate in large part due to assumptions we consider unachievable. However, $1.20 is in the air and our sub-$1.00 estimate, even if it ends up being right, is for now impotent. Wisely, EA kitchen-sinked Q1 June expectations. As usual, September is likely air-tight, as Madden and NCAA football will ship and FIFA, scheduled for the December quarter, can always ship a bit early if September is looking light. As such, while we think EA's FY14 EPS view is aggressive, to say the least, the company has set a very achievable bar for the next two quarters. Any December/March softness is 1) far away; and 2) not even near top of mind for investors, who will increasingly view EA shares as a relatively safe, albeit expensive, way to play the console transition.”

Electronic Arts closed on Tuesday at $18.41.

Posted-In: Monness Crespi HardtAnalyst Color Upgrades Analyst Ratings


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