TTWO TTWO
Board Highlights
Topic List Post New Topic

MSG # GO



Rap Sheet

Author:

LongTerm CapGains

Subject:

Off Topic

Date:

04/28/15 at 2:25 PM CDT

 

 

READ: 6

RPLY: 0

0

0

RECS:0

Sentiment:

Neutral

Brean Capital on EA

Here is what one of Wall Street's top gaming analysts, Todd Mitchell of Brean Capital, is expecting for the quarter.Electronic Arts Still Has Momentum, But Shares Are ‘Toppy' According to Mitchell, Electronic Arts will likely report upside to its prior guidance given strong attach rates on "FIFA" and higher digital revenue. The analyst noted that Electronic Arts faces a tough comp against "Titanfall" and "Battlefield 4" in the prior year, but the company should narrow the gap through an estimated $104 million in "Ultimate Team" DLC revenue from the EA Sports title. Mitchell also added that EA's "Battlefield" franchise now holds more inherent risk than Activision Blizzard's "Call of Duty" given that the two most recent "Battlefield" titles were the weakest in the franchise's history. Moreover, the analyst argued that "Ultimate Team" may be "getting ahead of itself." Bottom line, Mitchell stated that there are no catalysts for the franchise over the next couple of years, while average revenue per user levels are at the high-end for console titles with little visibility into how the company can grow the metric further. Despite expectations for a strong quarter, the analyst suggested investors look for a pull-back in the stock before being more aggressive. EA will report its fourth quarter 2015 results on Tuesday, May 5, after market close. Shares remain Buy rated with an unchanged $61 price target.

Copyright 2014 All Rights Reserved; Patent Pending