Needham & Company Lowers Price Target on Electronic Arts (EA); Guidance Skewed Heavily Toward To Q4

August 1, 2012 7:51 AM EDT
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Price: $80.51 +0.79%

Rating Summary:
    19 Buy, 8 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 19 | Down: 19 | New: 13
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Needham & Company maintains a 'Buy' on Electronic Arts (NASDAQ: EA) price target of $20.00 (from $22.00).

Analyst, Sean McGowan, said, "...Digital revenue continues to accelerate, accounting for 2/3rds of 1Q revenues, with strong growth expected to continue. We continue to believe EA is very well positioned to outperform most of its major publishing peers...We have maintained our full year EPS estimates of $1.15 for 2013, $1.45 for 2014 and $1.75 for 2015. We have lowered our price target from $22 to $20, as we now believe the stock’s valuation multiples are likely to be more modest. We now assume an EV/EBITDA multiple of 5.0x forward 12 month EBITDA a year from now."

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 $11.02 yesterday.

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