Electronic Arts’s “Outperform” Rating Reaffirmed at Zacks (EA)
Electronic Arts (NASDAQ:EA)‘s stock had its “outperform” rating reiterated by Zacks in a research report issued on Monday. They currently have a $45.00 price target on the stock. Zacks‘s price target would indicate a potential upside of 18.92% from the company’s current price.
Zacks’ analyst wrote, “Electronic Arts reported better-than-expected first-quarter 2015 results, comfortably beating the Zacks Consensus Estimate on both lines. Management provided an optimistic second-quarter and full-year guidance based on a strong digital product portfolio. Despite intensifying competition, we believe that EA’s strong digital portfolio and continuing growth in the tablet and smartphone markets are the key growth catalysts. The company’s strong portfolio of games and new consoles will continue to boost its market share. Moreover, its efforts to optimize costs through overhead reductions will be beneficial in the long run. However, higher consumer spending on new consoles will continue to hurt software sales in the near term. Nevertheless, we believe that EA’s innovative product pipeline will drive market share in fiscal 2015. Thus, we reiterate our Outperform recommendation and set a price target of $45.00. “
Electronic Arts (NASDAQ:EA) traded up 1.99% on Monday, hitting $37.84. The stock had a trading volume of 2,796,091 shares. Electronic Arts has a 52 week low of $20.47 and a 52 week high of $38.64. The stock’s 50-day moving average is $36.18 and its 200-day moving average is $32.72. The company has a market cap of $11.829 billion and a P/E ratio of 96.11.
Electronic Arts (NASDAQ:EA) last posted its quarterly earnings results on Tuesday, July 22nd. The company reported $0.19 earnings per share for the quarter, beating the analysts’ consensus estimate of ($0.04) by $0.23. The company had revenue of $775.00 million for the quarter, compared to the consensus estimate of $709.15 million. During the same quarter last year, the company posted ($0.40) earnings per share. Electronic Arts’s revenue was up 56.6% compared to the same quarter last year. Analysts expect that Electronic Arts will post $1.92 EPS for the current fiscal year.
In other Electronic Arts news, EVP Joel Linzner sold 25,000 shares of the stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $37.69, for a total value of $942,250.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link.
EA has been the subject of a number of other recent research reports. Analysts at Wedbush raised their price target on shares of Electronic Arts from $43.00 to $49.00 in a research note on Wednesday, July 23rd. They now have an “outperform” rating on the stock. Separately, analysts at BMO Capital Markets raised their price target on shares of Electronic Arts from $40.00 to $46.00 in a research note on Wednesday, July 23rd. They now have an “outperform” rating on the stock. Finally, analysts at Cowen and Company raised their price target on shares of Electronic Arts from $38.00 to $44.00 in a research note on Wednesday, July 23rd. They now have an “outperform” rating on the stock. Six research analysts have rated the stock with a hold rating, thirteen have given a buy rating and one has issued a strong buy rating to the company’s stock. The stock presently has a consensus rating of “Buy” and an average price target of $41.70.
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.
To view Zacks’ full report, visit Zacks’ official website.
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