UPDATE: Piper Jaffray Lifts Electronic Arts PT on Revised Expectations for New Console Cycle

In a report published Thursday by Piper Jaffray, analyst Michael Olson maintained his Neutral rating on Electronic Arts (NASDAQ: EA) and lifted the price target from $14 to $20.

In the report, Olson wrote, "We are publishing an updated EA model based on our latest thoughts on 2014 industry trends as well as expectations for the new consoles. There is potential for a near-term (next several quarters) "air pocket" in software sales as gamers anticipate shipment of next gen hardware. We expect overall video game software sales to be negatively impacted by this phenomenon during 2013 and early 2014. We also, however, anticipate za period of renewed growth following the transition, as the next gen console installed base becomes material. We are increasing our price target on EA to $20 based on 14x our new CY'13 EPS estimate of $1.43. We have increased our target multiple to 14x from 10x driven by incremental confidence in physical and digital growth opportunities associated with a new console cycle."

EA closed Wednesday at $19.07.