Wedbush Morgan Securities' Michael Pachter gave his report today on Electronic Arts, raising the company's price target to $27 and expressing his confidence in their goals. In particular, Pachter sees more high profile launches coming, and is especially bullish for EA's Wii titles.

"We think that the company's lineup will allow it to handily beat consensus expectations the first half of the year, and expect EA shares to continue to appreciate over the near term. We are particularly impressed with the potential for EA Sports Active and for Tiger Woods, and think that both could be blockbusters on the Wii."

While Pachter was mostly positive about the company, he still has serious doubts about unproven franchises and business models. "We remain skeptical about its recent effort at subscription online play, and estimate that its Warhammer MMO is generating only a modest profit. With 300,000 subscribers, the game is probably only throwing off $10 million or so in profits (we estimate that operating break-even is 225,000 – 250,000 subscribers). We remain skeptical about the profit contribution from 'mid session' free-to-play games, and are hopeful that EA will prove the concept before investing significantly in the future. We are equally skeptical about the potential for Spore as a 'franchise,' given that after years of hype, the game sold about as well as a typical SpongeBob game."