Needham & Company Upgrades Electronic Arts (EA) to Buy; Expecting Accelerated Growth in 2013

Needham & Company upgraded Electronic Arts (NASDAQ: EA) from Hold to Buy with a price target of $22.00.

Analyst, Sean McGowan, said, "Results for 1Q were in line with our expectations, with digital revenues continuing to grow faster than total sales. We expect 2013 to see strong sales and EPS growth, with expanded margins and broad success on multiple platforms. We do not believe the current valuation reflects EA’s cash-generating potential, the strength of its many brands, and its reduced reliance on any single product, platform or distribution channel. We expect the stock to trade at $22 or higher in the next year."

"We have lowered our F2013 EPS estimate from $1.25 to $1.15 on slightly lower sales and gross margins. We have lowered our F2014 EPS estimate from $1.50 to $1.45 on higher sales but lower margins."

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 $15.13 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Coherent (COHR) PT Raised to $420 at Needham
• Freedom Broker Upgrades Lifeway Foods (LWAY) to Buy
• EA Brings Madden Bowl to Full Sail University as Madden NFL 27 Championship Series Returns to the University's Campus for Third Consecutive Year