Citi Sees Promise in EA's (ERTS) Mobile Platform, Says Buy
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Price: $19.84 -1.93%
Rating Summary:
6 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 3 | Down: 5 | New: 34
Rating Summary:
6 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 3 | Down: 5 | New: 34
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Citi's Neil Doshi is pounding the table on shares of Electronic Arts (Nasdaq: ERTS) Tuesday morning following recent meetings with management. The analyst believes investors should be buying the stock.
Doshi sees sales to Electronic Arts' digital segment surging 41 percent to $1.15 billion next year. The analyst believes this will help move operating margin from 8 percent this year to about 10 percent in 2012. Doshi feels EA is only in the early stages of a social boom, leaving plenty of room to improve.
The analyst also pointed at strong sell-through for Battlefield 3. From the end of October to the end of November, EA shipped more than 8 million units of the gaming, implying about 1 million games sold a week following the first week's 5 million units sold.
Taking a look at the upcoming Star Wars MMO, Doshi noted the beta seemed promising. About 750,000 users player for an average of 12 hours over the test, while 2 million signed up for the demo.
Citi maintains a Buy rating and $26 price target on shares of Electronic Arts.
Shares last traded at $23.07, up 1.5 percent from Monday's closing price.
To track all the market-moving analyst action on shares of Electronic Arts, visit our Analyst Ratings page.
Doshi sees sales to Electronic Arts' digital segment surging 41 percent to $1.15 billion next year. The analyst believes this will help move operating margin from 8 percent this year to about 10 percent in 2012. Doshi feels EA is only in the early stages of a social boom, leaving plenty of room to improve.
The analyst also pointed at strong sell-through for Battlefield 3. From the end of October to the end of November, EA shipped more than 8 million units of the gaming, implying about 1 million games sold a week following the first week's 5 million units sold.
Taking a look at the upcoming Star Wars MMO, Doshi noted the beta seemed promising. About 750,000 users player for an average of 12 hours over the test, while 2 million signed up for the demo.
Citi maintains a Buy rating and $26 price target on shares of Electronic Arts.
Shares last traded at $23.07, up 1.5 percent from Monday's closing price.
To track all the market-moving analyst action on shares of Electronic Arts, visit our Analyst Ratings page.
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