Story updated at 10 a.m. to reflect market activity.
EA fell -2.3% to $37.54 in morning trading.
The analyst firm also raised its EPS estimates for the company through 2016. BMO Capital analyst Edward S. Williams noted that EA continues to execute well, and realize higher margins.
"With a strong start and leading share on next-generation consoles from Microsoft and Sony, we believe Electronic Arts is well positioned for a period of sustained growth with an impressive slate of core titles, strong digital growth, and focus on cost control," Williams wrote. "We also believe the company continues to leverage its portfolio of key brands and evolving business models across multiple platforms to reach and monetize a broader audience."
Separately, TheStreet Ratings team rates ELECTRONIC ARTS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ELECTRONIC ARTS INC (EA) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."