Piper Jaffray Upgrades Electronic Arts to Overweight (ERTS)

Piper Jaffray is out with its report today on Electronic Arts ERTS, upgrading ERTS from Neutral to Overweight. In a note to clients, Piper Jaffray writes, "We are upgrading shares of ERTS to Overweight as the company's transition to digital accelerates and margins recover. We are incrementally more positive on ERTS given improved digital sales, increased earnings outlook, margin recovery and a valuation at the low end of its recent trading range. Our FY12 revenue estimate has increased from $3.8B to $3.90B and EPS moves from $0.80 to $0.82 (+20% Y/Y). We are initiating FY13 sales estimate at $3.96B (+1.4% Y/Y) and EPS at $0.90 (+10% Y/Y)." Piper Jaffray increases its PT on ERTS from $16 to $19.50. At the time of posting, shares of ERTS were trading at $18.11, up 15.94% from Tuesday's close.