EA guidance needed for 09, says Pachter

Wedbush Morgan's man in the spotlight Michael Pachter has said that EA's decision to defer guidance for fiscal 2009 until May in its recent financial statement is a "mistake".

"We believe management made a mistake in deferring guidance till May, as EA stock has traded around the $45 level since August 2003," he said, here. "In our view, the stock's consistent 'reversion to the mean' has been attributable to recurring investor skepticism that EA can grow earnings significantly above the peak earnings generated in FY:04. We think that investors have tired of waiting for results, and are looking to the company's new CEO for assurance that EA will return to peak margins and earnings in the foreseeable future."

Pachter is maintaining a "Strong Buy" rating on EA's stock and lowering Wedbush's price target from $72 to $66.