Electronic Arts Inc. (NASDAQ:EA) gains Tuesday, finding traction in part as Sterne Agee analyst Arvind Bhatia reiterated a Buy rating and $54 price target on the game and content company, calling it a “Best Idea.” Bhatia said owning shares of EA provides exposure to the ongoing video game console cycle and the mobile gaming space, which is growing well driven by the continued rapid adoption of smartphones.
The analyst highlighted 15% to 20% EPS growth potential, a strong product portfolio, margin expansion potential, and valuation. Shares moved up to a session high of $46.06. Shares have largely consolidated since hitting a five-year high of $47.13 on Dec. 5.
In terms of market cap, Electronic Arts Inc. (NASDAQ:EA) is now valued at 13.42 billion. The company last reported earnings per share of 1.12 on Oct 28th. The company is expected to report earnings per share next year 11.86% higher than this year. The five year earnings per share estimate is at 16.30%.
In terms of ownership, company insiders have sold 9.79% of their stock over the past quarter while institutions have increased their positions by 0.24%. As a whole, institutions own 99.50% of the total outstanding shares.
Several analysts have recently issued updates on the company. One recent update included UBS Reiterating of the stock on July 23rd with a Neutral rating and $40 price target. Prior to that, MKM also weighed in on the stock. MKM Partners Reiterated their Neutral stance on the company on July 23rd moving their price target of $40. Analysts as a whole have a target price of $44.24 and a recommendation score of 2.20.
Electronic Arts Inc. develops, markets, publishes, and distributes game software content and services for video game consoles, personal computers, mobile phones, and tablets. The company operates through EA Games, EA SPORTS, Maxis, PopCap, and All Play segments. It provides action-adventure, casual, family, fantasy, first-person shooter, horror, science fiction, role-playing, racing, simulation, sports, and strategy games under the Battlefield, Mass Effect, Need for Speed, Dragon Age, The Sims, Bejeweled, and Plants v. Zombies, as well as EA SPORTS, Battlefield 4, FIFA Street, Maxis, Madden NFL, Medal of Honor, and Star Wars brand names. The company also offers casual games, such as cards, puzzles, and word games through its pogo.com, as well as on other platforms; and digital content and Internet-based advertising services. The company was founded in 1982 and is headquartered in Redwood City, California.