Electronic Arts (EA) is No Darling but Shorts Should Beware
Tweet Send to a FriendGet Alerts EA Hot Sheet
Price: $21.75 -1%
Rating Summary:
5 Buy, 10 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Rating Summary:
5 Buy, 10 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Trade EA Now!
Analyst at MKM are cautious on Electronic Arts (NASDAQ: EA), but are unwilling to take an overly negative view on the stock considering already pessimistic sentiment and the potential for a short squeeze.
"Based on current sentiment, we believe in-line 3Q results and no change to the full-year outlook could cause a short squeeze," warned analyst Eric Handler.
Short interest is at a 12-month peak and equals 26.4 million shares, more than 9 percent of the float, noted Hander.
"Furthermore, with the increasing likelihood of a new console cycle beginning at the end of this year and a more appealing release slate for EA in FY14 (Battlefield, Dragon Age, UFC), the company's longer-term appeal should improve in the coming quarters," added the analyst.
MKM Partners has a Neutral rating on Electronic Arts (NASDAQ: EA) with revised fair value estimate of $15.00 (from $13.00).
For an analyst ratings summary and ratings history on Electronic Arts click here. For more ratings news on Electronic Arts click here.
Shares of Electronic Arts closed at $14.77 yesterday, with a 52 week range of $10.77-$20.64.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
"Based on current sentiment, we believe in-line 3Q results and no change to the full-year outlook could cause a short squeeze," warned analyst Eric Handler.
Short interest is at a 12-month peak and equals 26.4 million shares, more than 9 percent of the float, noted Hander.
"Furthermore, with the increasing likelihood of a new console cycle beginning at the end of this year and a more appealing release slate for EA in FY14 (Battlefield, Dragon Age, UFC), the company's longer-term appeal should improve in the coming quarters," added the analyst.
MKM Partners has a Neutral rating on Electronic Arts (NASDAQ: EA) with revised fair value estimate of $15.00 (from $13.00).
For an analyst ratings summary and ratings history on Electronic Arts click here. For more ratings news on Electronic Arts click here.
Shares of Electronic Arts closed at $14.77 yesterday, with a 52 week range of $10.77-$20.64.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- KeyBank Upgrades MDC Holdings (MDC); Cuts PulteGroup (PHM) & Ryland Group (RYL)
- Signs of Solid Q2 at American Eagle (AEO) - Analyst
- UPDATE: Exane BNP Paribas Downgrades BlackBerry (BBRY) to Underperform; Analyst Says Profit 'Drying Up'
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS View, Analyst PT Change
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
