A day after Electronic Arts Inc.
Analyst Christopher Merwin also boosted his EPS estimate for the fiscal year 2018 from $4.20 to $4.34. The revised price objective is based on the estimated FCF of $5.07 per share for the fiscal year 2018. The analyst ranked Electronic Arts as a top pick in his group.
The brokerage noted that the company’s EPS came ahead of its estimates by $0.11 a share despite some skittishness. Stating that the battle is ready for the holiday season dominated December quarter, the firm expects improved gross margin in the
In a research note, Barclays stated, “We believe Star Wars: Battlefront under-indexed on digital downloads (~17 percent of total) with a royalty of 10–12 percent. However, we expect will have 40 percent + digital downloads without any Battlefield 1royalty, and as a result, we are modeling roughly 400 bps of y/y gross margin expansion in F3Q. In FY18, we are modeling another 116 bps of gross margin expansion, as digital downloads likely exceed management's conservative forecast for 5 points of annual mix shift.”
The brokerage sees "Battlefield 1" to sell a minimum of 16 million units and "Titanfall" about 9 million units. As a result, there is a possibility of "Mass Effect" being pushed into the fiscal year 2018.
At last check, the stock was up 2.29 percent to $79.62.
Image Credit: By Simon Davison from Los Gatos, United States [CC BY 2.0], via
|Oct 2016||Cowen & Co.||Downgrades||Outperform||Market Perform|
|Oct 2016||Bank of America||Downgrades||Buy||Neutral|
|Sep 2016||Morgan Stanley||Initiates Coverage on||Overweight|
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