Shares of Electronic Arts Inc. (NASDAQ: EA) have been on a tear since the start of the year, gaining more than 36%. The video game giant has been impressive throughout and largely sidestepped the volatility that rattled broader equities in March and April. Less experienced investors might have been expecting the stock to take a breather heading into summer, but the more seasoned ones would have known better.
EA’s ability to hold its Q1 gains through the spring, coupled with its blowout earnings in May, was a clear sign of strength. So, while this week’s monster upgrade to a Buy from Eric Handler at Roth Capital might not be a complete surprise, it’s still a major validation of the bull case that’s been building. Just as impressive as the Buy rating was the fresh $185 price target, which points to nearly 20% upside from where the stock closed on Thursday evening.
