Needham & Company upgraded Electronic Arts (NASDAQ: EA) from Hold to Buy with a PT of $22.00.
Needham & Company upgraded Electronic Arts (NASDAQ: EA) from Hold to Buy with a price target of $22.00.
Analyst, Sean McGowan, said, "Results for 1Q were in line with our expectations, with digital revenues continuing to grow faster than total sales. We expect 2013 to see strong sales and EPS growth, with expanded margins and broad success on multiple platforms. We do not believe the current valuation reflects EA’s cash-generating potential, the strength of its many brands, and its reduced reliance on any single product, platform or distribution channel. We expect the stock to trade at $22 or higher in the next year."
"We have lowered our F2013 EPS estimate from $1.25 to $1.15 on slightly lower sales and gross margins. We have lowered our F2014 EPS estimate from $1.50 to $1.45 on higher sales but lower margins