Analyst Matthew Cost from Morgan Stanley maintained a Hold rating on Electronic Arts (EA – Research Report) and increased the price target to $148.00 from $135.00.
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Matthew Cost has given his Hold rating due to a combination of factors impacting Electronic Arts’ current and future performance. The company reported strong fourth-quarter results, with bookings and earnings per share significantly exceeding prior estimates. This was largely driven by a rebound in their FC franchise and strong performances from The Sims and other sports titles. However, the performance of Apex Legends was a concern, as it negatively impacted live services growth.
Despite the positive results, the outlook for Electronic Arts remains mixed. The upcoming release of the next Battlefield title is seen as a critical test of the company’s ability to succeed with non-sports games, which is essential for future earnings growth and valuation expansion. While the company has set optimistic guidance for fiscal year 2026, the success of these non-sports titles will be crucial in determining whether the company can achieve these targets. Therefore, the Hold rating reflects a cautious stance, balancing strong recent performance with uncertainties in the company’s future growth trajectory.
In another report released on April 30, Roth MKM also maintained a Hold rating on the stock with a $158.00 price target.