Electronic Arts Given “Neutral” Rating at Piper Jaffray (EA)
Electronic Arts (NYSE: EA)‘s stock had its “neutral” rating reaffirmed by Piper Jaffray in a research note issued on Thursday. They currently have a $20.00 price target on the stock, up from their previous price target of $14.00.
The analysts wrote, “We are publishing an updated EA model based on our latest thoughts on 2014 industry trends as well as expectations for the new consoles. There is potential for a near-term (next several quarters) “air pocket” in software sales as gamers anticipate shipment of next gen hardware. We expect overall video game software sales to be negatively impacted by this phenomenon during 2013 and early 2014. We also, however, anticipate za period of renewed growth following the transition, as the next gen console installed base becomes material. We are increasing our price target on EA to $20 based on 14x our new CY’13 EPS estimate of $1.43. We have increased our target multiple to 14x from 10x driven by incremental confidence in physical and digital growth opportunities associated with a new console cycle.”
Other equities research analysts have also recently issued reports about the stock. Analysts at Brean Murray reiterated a “buy” rating on shares of Electronic Arts in a research note to investors on Friday, March 8th. They now have a $22.00 price target on the stock, up previously from $18.00. Separately, analysts at Bank of America reiterated a “neutral” rating on shares of Electronic Arts in a research note to investors on Wednesday, March 6th. They now have a $19.00 price target on the stock, up previously from $16.00. Finally, analysts at Macquarie upgraded shares of Electronic Arts from a “neutral” rating to an “outperform” rating in a research note to investors on Thursday, February 21st. They now have a $23.00 price target on the stock, up previously from $15.00.
Twelve equities research analysts have rated the stock with a buy rating, nine have given a hold rating, and one has assigned a sell rating to the company’s stock. The company presently has an average rating of “overweight” and a consensus price target of $26.18.
Electronic Arts (NYSE: EA) traded up 1.37% on Thursday, hitting $19.2001. Electronic Arts has a 52-week low of $10.77 and a 52-week high of $19.51. The stock’s 50-day moving average is currently $17.13. The company has a market cap of $5.761 billion and a price-to-earnings ratio of 34.63.
Electronic Arts (NYSE: EA) last posted its quarterly earnings results on Wednesday, January 30th. The company reported $0.57 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.56 by $0.01. The company had revenue of $1.18 billion for the quarter, compared to the consensus estimate of $1.29 billion. During the same quarter last year, the company posted $0.99 earnings per share. Electronic Arts’s revenue was down 28.4% compared to the same quarter last year. Electronic Arts has set its Q4 guidance at $0.57-0.72 EPS and its FY13 guidance at $0.86-1.00 EPS. Analysts expect that Electronic Arts will post $0.94 EPS for the current fiscal year.
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 (platforms).
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