Electronic Arts (EA) PT Raised to $156 at BofA Securities Ahead of a Driver Filled FY22
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BofA Securities analyst Justin Post raised the price target on Electronic Arts (NASDAQ: EA) to $156.00 (from $153.00) after the company reported F4Q revenue exceeded consensus by 7% on Live Services and EPS that topped the Street by 16% on Opex leverage. Live Services accelerated to 39% Y/Y growth from 28% with Ultimate Team up 30% vs. 17%. While management didn’t comment on QTD trends, it guided F1Q rev ~9% above the Street due to strength in Live Services.
The analyst reiterated a Buy rating, noting that FY22 has numerous drivers and estimates likely have upside. He stated "EA went a step further than the last call and quantified contribution to FY22 growth for its biggest franchises. Core EA will grow 7% Y/Y incl. $750mn in core-Apex (upside from mobile, an “achievable” level for Battlefield units (~13mn range), and 50% growth from Sports incl. Golf/NCAA, F1, and Baseball. We think guidance also implies FIFA franchise up slightly Y/Y. EA’s outlook implies $675mn for Codemasters/Glu, but importantly does not assume any revenue or cost synergies; a reason why FY22 EPS may be conservative".
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