Goldman Sachs Resumes Coverage On Electronic Arts With Neutral Rating

According to Goldman Sachs, Electronic Arts ERTS coverage is resumed at Neutral. Goldman Sachs reported that it resumes coverage of Electronic Arts (EA) with a Neutral rating and $22 12-month price target. “We believe EA can achieve 15% or better operating margins in the medium term vs. 8% today via a mix shift from 20% to 40%+ of revenue from digital, a development budget that chases fewer packaged goods titles, and good but not category killing success for its flagship franchise releases this fall, Battlefield 3 and Star Wars: The Old Republic. With shares up 20% this year, we believe valuation discounts successful launches of Battlefield 3 and The Old Republic.” Electronic Arts closed yesterday at $19.95.