Electronic Arts Upgraded to Strong-Buy at Needham & Company (EA)
Electronic Arts (NYSE:EA) was upgraded by Needham & Company from a “hold” rating to a “strong-buy” rating in a research note issued on Wednesday, TheFlyOnTheWall.com reports. The firm currently has a $33.00 target price on the stock. Needham & Company’s price target suggests a potential upside of 28.76% from the company’s current price.
The analysts wrote, “We are upgrading to a Strong Buy with a $33 PT in light of the positive 2Q revenue surprise, impressive opex control, impending console refresh cycle, and longer ‘tails’ associated with digital gaming. Looking at the quarter, EA reported 2Q results that far exceed prior guidance as digital revenues grew and cost management remained stringent. NG revenues were $1040mm compared to guidance of $975mm as digital revenues grew 11% YoY. EPS were $0.33 compared to our estimate of $0.11 as the company continues to manage for flat YoY expenses despite the console transition. The company reiterated FY revenue guidance ($4B) but now expects EPS of $1.25 (previously $1.20).”
A number of other analysts have also recently weighed in on EA. Analysts at Brean Capital reiterated a “buy” rating on shares of Electronic Arts in a research note to investors on Wednesday, September 18th. Analysts at Hilliard Lyons downgraded shares of Electronic Arts from a “neutral” rating to an “underperform” rating in a research note to investors on Wednesday, August 14th. Two equities research analysts have rated the stock with a sell rating, ten have issued a hold rating, twelve have given a buy rating and one has assigned a strong buy rating to the company. Electronic Arts presently has an average rating of “Hold” and an average price target of $24.04.
Electronic Arts (NYSE:EA) opened at 25.63 on Wednesday. Electronic Arts has a one year low of $12.72 and a one year high of $28.13. The stock’s 50-day moving average is $25.49 and its 200-day moving average is $23.91. The company has a market cap of $7.859 billion and a P/E ratio of 69.81.
Electronic Arts (NYSE:EA) last posted its quarterly earnings results on Tuesday, October 29th. The company reported $0.33 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.12 by $0.21. The company had revenue of $1.04 billion for the quarter, compared to the consensus estimate of $977.75 million. During the same quarter in the previous year, the company posted $0.15 earnings per share. The company’s revenue for the quarter was down 3.7% on a year-over-year basis. On average, analysts predict that Electronic Arts will post $1.28 earnings per share for the current fiscal year.
In other Electronic Arts news, Insider Frank D. Gibeau sold 219,874 shares of Electronic Arts stock on the open market in a transaction dated Thursday, October 31st. The stock was sold at an average price of $25.90, for a total transaction of $5,694,736.60. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link.
Electronic Arts Inc develops, markets, publishes and distributes game software content and services that can be played by consumers on a variety of video game machines and electronic devices (NYSE:EA).
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