Deutsche names Electronic Arts top pick in video games, upgrades to Buy

Deutsche Bank analyst Benjamin Soff took over coverage of the video game space and upgraded Electronic Arts (EA) to Buy from Hold with a price target of $175, up from $156. The analyst kept Buy ratings on Activision Blizzard (ATVI) and Take-Two Interactive (TTWO). He has a bullish view on industry fundamentals and selected Electronic Arts as his top pick in the group. EA has the "strongest organic growth outlook" in the sector this year, driven by continued strength in Apex Legends and other live services, a new Battlefield title this holiday season, and growing scale in mobile, Soff tells investors in a research note. The analyst believes EA's outlook is "very achievable" and that Street expectations are too low. This creates a favorable setup for this fiscal year, says the analyst.