Electronic Arts (EA) PT Raised to $177 at Benchmark, GLUU Deal is a No-Brainer
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Benchmark analyst Mike Hickey raised the price target on Electronic Arts (NASDAQ: EA) to $177.00 (from $171.00) on the belief that the Glu Mobile (NASDAQ: GLUU) "deal is a no brainer". The deal is immediately accretive to EA’s revenue and grow profitability.
The analyst reiterated a Buy rating, stating "We estimate Codemaster and GLUU could add $800M in revenue and $0.40 EPS to EA’s FY22 consensus". "The acquisition will add considerable scale to EA’s mobile busines and adds compelling growth games including Design Home, Covet Fashion, MLB Tap Sports Baseball and Kim Kardashian Hollywood. We anticipate EA can leverage the success of MLB Tap Sports Baseball to create new mobile games over FIFA, Madden and Golf. GLUU has a strong near-term pipeline of games including Deer Hunter, Tap Fishing and Table and Taste."
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