Story updated at 9:55 a.m. to reflect market activity.
Shares of EA were gaining 1.5% to $42 n morning trading.
The analyst firm set a price target of $48 for the video game publisher.
Analyst Christopher D. Merwin expects digital revenue to make up 53% of EA's total revenue in full year 2015, up from 44% in full year 2013. The analyst cites the Ultimate Team feature in the publisher's core franchises including FIFA and Madden as a driving force in digital revenue that increases engagement and monetization in those games.
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"EA has been proactive in adding new, high-margin digital revenue streams, while simultaneously cutting costs and rationalizing its product pipeline to drive margin expansion," Merwin wrote. "Most importantly, we believe digital content, like live services, is helping EA to increase the engagement levels of its player-base, a trend that should improve revenue visibility for EA's core titles and eventually transform the console-game publishing business into a higher multiple subscription model with less volatility."
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 revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, compelling growth in net income and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."