Electronic Arts (ERTS) this morning was added to the Goldman Sachs Conviction Buy List. Goldman analyst Mark Wienkes notes that the stock is off about 10% since he picked up coverage of the stock six months ago,
due to “poor execution and resultant share losses.” But he thinks the
stock should move higher from here, driven by continued industry
growth, up to 14 new game titles coming in the summer and fall, and
“clarity around the Take Two bid.”
Wienkes thinks ERTS shares already reflect a likely bump in its current $26-a-share offer for Take Two (TTWO).
The Goldman move comes just one day after Electronic Arts announced the departure of CFO Warren Jenson.
ERTS today is up 95 cents, or 1.9%, to $50.64.
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