In a report released today, Matthew Cost from Morgan Stanley maintained a Hold rating on Electronic Arts, with a price target of $148.00.
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Matthew Cost’s rating is based on the current situation surrounding Electronic Arts, which is reportedly in advanced discussions to go private with a valuation of approximately $50 billion. This potential leveraged buyout, if it occurs, could significantly impact the company’s stock price and future market positioning. The valuation implies a share price of around $196, which aligns with the current market expectations and reflects a substantial premium over recent trading levels.
Despite the ongoing speculation about a possible buyout, there has been no official confirmation from the company, and past attempts to secure a deal have not materialized. Given these uncertainties and the lack of concrete information, Matthew Cost has opted for a Hold rating, suggesting that investors should wait for more clarity before making any significant investment decisions regarding EA’s stock.
Cost covers the Communication Services sector, focusing on stocks such as Trade Desk, AppLovin, and Electronic Arts. According to TipRanks, Cost has an average return of 13.9% and a 60.23% success rate on recommended stocks.
In another report released today, Goldman Sachs also reiterated a Hold rating on the stock with a $170.00 price target.