Citi Reiterates 'Buy' Rating on Electronic Arts (ERTS)

September 4, 2008 8:45 AM EDT

Citi reiterates a 'Buy' rating on Electronic Arts (Nasdaq: ERTS). Price target $64.

Citi analyst says, "ERTS CEO John Riccitiello gave a keynote speech on Day 2 of CIR’s Technology Conference. Citing the company’s signed non-disclosure agreement, Riccitiello did not give an update on a potential deal to acquire TTWO. We continue to believe a deal is possible though we expect ERTS to remain price disciplined. We reiterate our Buy rating, $64 PT, ahead of a strong seasonal period for video game stocks which is coincident with the release of the big Holiday Season games over the next few months...With concerns around preorder trends we had hoped to get a week 1 Madden sales update to compare with previous years. The company did not provide a Madden update, though notably they have not provided a week 1 Madden update with John Riccitiello as CEO so we do not view the lack of an update as a bad sign, but rather a new management style."

Electronic Arts Inc. develops, markets, publishes and distributes video game software and content that can be played by consumers on a variety of platforms, including video game consoles, such as the Sony PlayStation 2 and PLAYSTATION 3, Microsoft Xbox 360 and Nintendo Wii.

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