'Star Wars Battlefront' Reviews May Be Weak, But This Expert Thinks EA Stock Is Still A Buy
- Shares of Electronic Arts Inc (NASDAQ: EA) have been treading an upward path in 2015 and are up 45 percent year-to-date.
- Macquarie’s Ben Schachter maintained an Outperform rating on the company, with a price target of $83.
- The company’s new game is expected to be a mass market hit and record robust sales, Schachter stated.
Electronic Arts has released a new game – the Star Wars Battlefront. The game is a 12-40 player online shooter set in the Star Wars universe and is available both online and at retail.
Although the game has received relatively weak early reviews, it is still expected to be a mass-market hit and sell at least 13 million units in the quarter, analyst Ben Schachter mentioned, while adding that this could prove to be a conservative estimate.
Schachter noted that the markets are underestimating the revenue upside from additional content over the next 12 months. “Though still unconfirmed, we expect more monetizable content than just what is announced for the Star Wars Season Pass. We expect the additional content will help drive revenue through next 2016 and beyond,” the Macquarie report noted.
The analyst believes that the game’s core target market comprises of mass-market gamers and not hardcore FPS fans. Any weakness in Electronic Art’s shares on Star Wars reviews would represent a buying opportunity.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.