Electronic Arts' Valuation Is Out Of Touch With Its Financials And Prospects
Summary
Electronic Arts reported a solid Q1 FY20.
It is a leader in a secular growth industry. The company has a very bright future. It combines attractive prospects with healthy financials.
Electronic Arts’ valuation is out of touch with its financials and prospects.
We strongly recommend buying Electronic Arts shares and think that continued growth will result in significant price appreciation.
We expect, as is rumored, the company to make several positive announcements in Gamescom 2019 (20th-24th Aug).
We’re expecting details on upcoming releases like Need for Speed, Fallen Order, and FIFA 20 and further updates on other issues discussed in the earnings call.
We think that this event will be a positive with management restating its confidence in pre-announced sales guidance and it painting a picture of a busy backlog of releases.
Source: Seeking Alpha
https://seekingalpha.com/article/428005 ... -prospects