Goldman Sachs, Electronic Arts & Conviction Buy (ERTS, TTWO)

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By Douglas A. McIntyre Updated Published
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Goldman Sachs is making an aggressive call on Electronic Arts, Inc. (NASDAQ: ERTS) in the video game sector this morning. The brokerage firm has added Goldman Sachs to its CONVICTION BUY LIST.  It sees over 20% upside to its $60.00 price target based upon the $49.69 price yesterday. 

The research note also indicates that shares are still down 10% from when it was initiated in coverage last year due to poor execution and loss in market share during a record 2007.  It notes a 14 new title slate of games coming in the Summer to Fall line-up and actually sees clarity around the buyout offer for Take-Two Interactive Software Inc. (NASDAQ: TTWO).

The long-term appreciation is still predicated on top-line growth and margin expansion as it capitalizes on the new consoles in the marketplace. 

There are hardly any trades that have gone off this morning, but so far shares are indicated up at $52.00 in pre-market trading.

Jon C. Ogg
March 25, 2008

Jon Ogg produces the Special Situation Investing Newsletter and can be reached at [email protected]; he does not own securities in the companies he covers.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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