Re: Electronic Arts (EA)
Posted: Sat Jun 08, 2019 5:11 am
not vested
Citi sees EA as fairly valued
By Jason Aycock
While videogame-industry eyes this week have been on Google's Stadia launch, an initiation of Activision Blizzard (ATVI +3.1%) and Electronic Arts (EA +1.6%) by Citi finds both companies fairly valued.
Analyst Jason Bazinet has started both companies at Neutral, joining about a dozen other firms in the minority there (about two dozen rate them Buys).
EA can meet bookings expectations now and through 2020, he writes, while any outperformance from an expected $435M in Apex Legends bookings will positively drive the share price. The company should have $6.7B in cash by 2022, he adds.
As for Activision, bookings forecasts look reasonable and he expects the prospect of Diablo IV being released in late 2020 instead of 2021.
Bazinet's waiting to see more business model details on cloud gaming platforms at Google, Microsoft and Amazon before sorting out any risk to game publishers.
He's set a price target of $102 on EA (vs. current $97.90) and a target of $47 on Activision Blizzard (vs. current $45.45).
Source: Seeking Alpha
https://seekingalpha.com/news/3469911-c ... rly-valued
Citi sees EA as fairly valued
By Jason Aycock
While videogame-industry eyes this week have been on Google's Stadia launch, an initiation of Activision Blizzard (ATVI +3.1%) and Electronic Arts (EA +1.6%) by Citi finds both companies fairly valued.
Analyst Jason Bazinet has started both companies at Neutral, joining about a dozen other firms in the minority there (about two dozen rate them Buys).
EA can meet bookings expectations now and through 2020, he writes, while any outperformance from an expected $435M in Apex Legends bookings will positively drive the share price. The company should have $6.7B in cash by 2022, he adds.
As for Activision, bookings forecasts look reasonable and he expects the prospect of Diablo IV being released in late 2020 instead of 2021.
Bazinet's waiting to see more business model details on cloud gaming platforms at Google, Microsoft and Amazon before sorting out any risk to game publishers.
He's set a price target of $102 on EA (vs. current $97.90) and a target of $47 on Activision Blizzard (vs. current $45.45).
Source: Seeking Alpha
https://seekingalpha.com/news/3469911-c ... rly-valued