Electronic Arts Dips Despite Stifel Price Target Increase

Shares of Electronic Arts (NASDAQ: EA) were trading ~1.5 percent lower in Wednesday's pre-market, despite receiving a price target increase from $42 to $46 at Stifel.

Analyst Drew Crum noted the company reported better-than-expected earnings in its first quarter of fiscal 2015. The beat was driven by top-line upside and lower operating expenses.

Despite the solid performance, Crum noted the company has left its full-year 2015 guidance unchanged. As for himself, Crum made a "modest" raise to his 2015 and 2016 EPS estimates increasing them from $1.91 and $2.30 to $1.95 and $2.35.

Crum currently rates Electronic Arts as a Buy and said his positive stance reflects perceived benefits from the new console product cycle, a continued mix shift toward faster growth, greater confidence in cost management and an improving cash flow profile.