Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (43203)	3/21/2006 12:40:41 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69339

Market Scan EA's Long-Term Outlook Appears Strong David Ng, 03.21.06, 11:39 AM ET Electronic Arts Tear Sheet Chart News Most Popular Videos SportsMoney: Catching On Bell Tolls For Sprint Nextel Apple Sweetens Product Line Getting Enron The Sun Still Rises Most Popular Stories Best & Worst Neighborhoods To Buy A Home The World's Most Expensive Cars Billionaire Bachelors The Top 20 Billionaires Homes Of The Billionaires Buying shares of Electronic Arts is an offer investors shouldn't refuse. The video-game maker, which just released The Godfather: The Game, saw its shares rise close to 4% in Tuesday morning trading, with analysts voicing a generally positive outlook. Merrill Lynch upgraded the company to "buy" from "neutral," saying the stock currently provides an attractive entry point. The research firm said EA (nasdaq: ERTS - news - people ) is positioned to benefit from an improved console product cycle, thanks to the Sony (nyse: SNE - news - people ) Playstation 3, scheduled for November release, and stronger April sales of the Microsoft (nasdaq: MSFT - news - people ) Xbox 360. While EA's near-term earnings look pressured, Merrill thinks fiscal 2008 promises to be more compelling for the company, with possible revenue growth of 20%. Somewhat more guarded was Piper Jaffray, which reiterated a "marketperform" rating on EA. "We view EA's near-term risk-reward profile as neutral," wrote analyst Anthony Gikas in a Tuesday report. The Piper analyst said EA's sales growth will remain "challenging" as industry conditions continue to be soft for another 18 months. However, long-term investors should add to positions at current levels, according to the analyst, because downside appears limited. For fiscal 2007, the analyst lowered the earnings estimate on EA to $1 per share on revenue of $3.05 billion, from $1.10 per share on revenue of $3.145 billion. "Our model adjustments are primarily related to reduced industry sales expectations," the analyst said. In the near-term, the analyst believes EA shares will trade in the mid-$50s range.