Despite missing expectations for its second quarter, Wedbush analysts believe the focus remains on Electronic Arts Inc (NASDAQ:EA, ETR:ERT)’s (EA) pending, go-private transaction with an investor consortium led Saudi Arabia’s Public Investment Fund (PIF).
“We expect the transaction to go through with few regulatory hurdles," the analysts wrote in a note to clients on Wednesday.
They view the regulatory risk as being low, given the current favorable deal-making environment in addition to PIF’s existing gaming assets holding a modest market share.
Wedbush analysts, though, see plenty of room for improvement in EA’s mobile revenue, which they believe PIF can provide, and consider the takeover price of $210 per share as being reasonable.
They added that the company’s Battlefield 6 game is set to significantly outperform their previous estimates and now believe 12 million units sold in the launch quarter and 15-to-20-million-unit sales for the year is achievable.
Electronic Arts shares were flat at $200.29 in midday trading on Wednesday.