UPDATE: Brean Capital Reiterates Buy Rating, Raises PT on Electronic Arts on Further Upside Potential

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

, and raised the price target from $33.00 to $38.00. In the report, Brean Capital noted, “Digital and Titanfall drive beat, we see the potential for further upside. EA heartily beat F4Q14 expectations, but F2015 guidance raised the bar even higher. F4Q14 revenue of $914 million and non-GAAP EPS of $0.48 compared to guidance for $800 million and $0.09, fueled by $550 million in digital revenue. EA saw strength in all digital channels, but the key dynamic appears to be a much larger percentage of fullgame downloads for next gen consoles, at a 70% gross margin versus 50% for a retail sale, than was the case on prior gen consoles. F2015 guidance anticipates more of the same and includes a surprise TBA new IP in F3Q14 closing the BF4 revenue gap, for total revenue of $4.1 billion (including a 17% increase in digital revenue to $2.1 billion) and non-GAAP EPS of $1.85 (implying operating margins of 20%, a full year ahead of plan). The turnaround at EA under new management has been impressive and we believe the company is well positioned with a rapidly growing install base of next gen consoles. As a result, we are raising our target price to $38 from $33 and reiterate our Buy rating.” Electronic Arts closed on Tuesday at $28.05.