Piper Jaffray Sees Slip at Electronic Arts (EA) as Buying Opportunity - Reiterates Overweight
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Rating Summary:
28 Buy, 17 Hold, 0 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 11 | Down: 11 | New: 43
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Piper Jaffray maintained an Overweight rating and $87.00 price target on Electronic Arts (NASDAQ: EA) as shares slip 3% since Star Wars Battlefront launch. Despite negative sentiment on the Street, Piper Jaffray sees potential for the game's, as well as EA's expansion in FY17, and views the slip as a buying opportunity.
Analyst Michael Olson commented, "Shares of EA have slipped 3% since the launch of Star Wars Battlefront and we view the downward move as a buying opportunity. We continue to believe the company will meet or exceed guidance for 13-13.5M units of Battlefront, despite negative sentiment on the Street derived from holiday discounting at GameStop and disappointing reviews. But more importantly, we believe a potentially stronger title lineup in FY17 can drive both accelerating revenue growth and expansion of gross and operating margins via continued growth of digital revenue. We therefore suggest investors take advantage of any continued "sell the news" or weakness on short-term focused Star Wars Battlefront data points. We reiterate our OW and $87 PT."
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 $65.62 yesterday.
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