- Take-Two (TTWO +3.3%) and Electronic Arts (EA +2.4%) both rose this morning as Jefferies issued reports raising each firm to Buy, from Hold, with an eye toward the advancement of the new game console cycle.
- With around 48M-49M new-generation consoles in the wild at year's end, annual growth would be about 69%, and there might be 100M installed units by the end of 2017 -- leading to some sales capitalization from both firms off of fixed development costs.
- "EA looks well positioned against two multi-year tailwinds: faster than expected console sales and the transition to higher-margin digital revenue," Brian Pitz wrote. He raised EA's price target to $80, from $58. Shares are currently trading at $68.20.
- Brian Fitzgerald is looking for continued margin expansion at Take-Two and raised its target to $35 from $29. Shares are currently at $28.92.