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Cowen: Electronic Arts Not The Favorite, But Set For Big Quarter

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Cowen: Electronic Arts Not The Favorite, But Set For Big Quarter
  • Cowen published a report sharing some conclusions from its December Casual Digital Gaming Monthly (CDGM) survey on Thursday.
  • According to analysts Doug Creutz and Stephen Glagola, the data indicated “little change in positioning among the top mobile game publishers.”
  • In addition, the experts highlighted Electronic Arts Inc. (NASDAQ: EA) as appearing well positioned for a “big” quarter in mobile.

In a report issued Thursday, analysts at Cowen shared some conclusions from the firm’s December Casual Digital Gaming Monthly survey, which suggested positioning among the main mobile game publishers remains virtually unchanged. The experts believe the industry will consolidate, as increasing customer acquisition costs create higher barriers to entry.

Related Link: Activision Trades Down With Gaming Peers Despite eSports Acquisition

The note continued, stating the analysts think the winning companies will likely be those with differentiated product portfolios. The report reiterated preference for Activision Blizzard, Inc. (NASDAQ: ATVI), which has plans to acquire King Digital Entertainment PLC (NYSE: KING).

Set For A ‘Big’ Quarter

According to Cowen’s research note, Electronic Arts' share rankings rose across the board, driven by robustness from "Star Wars: Galaxy Heroes" and "Madden NFL Mobile." Remarkably, "Madden NFL Mobile" displaced "Candy Crush Saga" from the third spot on iPhone in December.

In fact, the analysts calculate Electronic Arts may have seen ~50 percent sequential mobile revenue growth in its third fiscal quarter – results will be announced on January 26.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

Image Credit: "EA Building RedwoodShores" by Eliot Lash - Own work. Licensed under CC BY-SA 3.0 via Wikimedia Commons.

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