EA (EA) Estimates, PT Lifted Sharply at Needham & Company

Needham & Company analyst Sean McGowan reiterated a Strong Buy rating while raising estimates and its price target on EA (NASDAQ: EA) from $33 to $40 following a big 'beat and raise' Q4.

McGowan commented, "We are raising our EPS estimates and targt price after EA reported better than expected F4Q results and issued F15 guidance that was above expectations. We have left our FY2015 revenue estimate unchanged, but see better gross margins and lower operating costs following the strong 4Q results. Our estimates are above guidance. We believe EA has taken an early lead in the console refresh cycle, selling ~1 mm copies of Titanfall and driving 2-3x increases in full game downloads for XBO and PS4. The company looks to be on pace to meet its target of doubling operating margin ahead of schedule."

The firm lifted FY 2015 EPS form $1.70 to $2.00 and FY 2016 EPS from $2.10 to $2.35.

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 $35.12 yesterday.

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