Electronic Arts (EA) Pacific Crest Resumes Coverage On 4 Interactive Entertainment Names Noting "The Party is Not Over Yet"

Analyst Evan Wingren is resuming coverage on four names citing positive sector outlook and Wingren recommends that clients be Overweight in the space according to a morning research note. Wingren is Overweight on three names and Sector Weight on one:

• Electronic Arts (NASDAQ: EA) Overweight, $112 PT
• Activision Blizzard (NASDAQ: ATVI) Overweight, $60 PT
• Take-Two Interactive Software (NASDAQ: TTWO) Overweight, $74 PT
• Zynga (NASDAQ: ZNGA) Sector Weight

The analyst sees a shift to digital distribution fueling secular gross margin rebound and says there is still room to grow at an accelerated pace. Further, some games may improve in quality as the companies utilize more real-time data and analysis.

To wit: "...the findings from and integration of data from real-time feedback will likely fuel more quality games. This will likely include incremental add-on content and allow players to invest further in immersive gaming experiences. As this occurs, we believe that the most quality and entertaining games with scale can drive network effects for greater engagement and monetization."

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