S&P Capital IQ Reiterates its SELL Rating on Electronic Arts

October 29 00:00 2011

New York, October 29 (RainbowNewsLine.com) – Analyst Jim Yin of S&P Capital IQ reiterates his SELL rating on the shares of Electronic Arts (NASDAQ: ERTS), while reducing his estimates for the company. The target price is set to $17.

Analyst Jim Yin, in a research note published yesterday mentions that the company has reported its Sep-Q loss per share substantially short of the estimates. Electronic Art’s revenues rose 7.5% to $1.03 billion, driven by sports titles and digital revenues, the analyst says. The analyst expects strong sales from Electronic Arts’ Battlefield 3, but remains cautious about the company’s move towards mobile games that are less profitable than console games. The revenue forecast for FY 2012(Mar.) has been raised by $75 million to $4.1 billion but EPS estimate has been reduced from $0.60 to $0.43 based on higher projected expenses.