Assessing Electronic Arts: Insights From 11 Financial Analysts

In the latest quarter, 11 analysts provided ratings for Electronic Arts EA, showcasing a mix of bullish and bearish perspectives.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 3 6 2 0 0
Last 30D 1 0 0 0 0
1M Ago 1 1 0 0 0
2M Ago 0 0 0 0 0
3M Ago 1 5 2 0 0

The 12-month price targets, analyzed by analysts, offer insights with an average target of $154.0, a high estimate of $165.00, and a low estimate of $135.00. A decline of 0.36% from the prior average price target is evident in the current average.

price target chart

Deciphering Analyst Ratings: An In-Depth Analysis

A comprehensive examination of how financial experts perceive Electronic Arts is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Timothy O'Shea Jefferies Raises Buy $165.00 $160.00
Drew Crum Stifel Raises Buy $163.00 $150.00
Martin Yang Oppenheimer Maintains Outperform $150.00 $150.00
Benjamin Soff Deutsche Bank Lowers Hold $150.00 $153.00
Brian Pitz BMO Capital Lowers Outperform $154.00 $160.00
Nick McKay Wedbush Maintains Outperform $162.00 $162.00
Colin Sebastian Baird Lowers Outperform $150.00 $160.00
Nick McKay Wedbush Maintains Outperform $162.00 $162.00
Eric Handler Roth MKM Lowers Neutral $135.00 $140.00
Martin Yang Oppenheimer Maintains Outperform $150.00 $150.00
Mike Hickey Benchmark Maintains Buy $153.00 $153.00

Key Insights:

  • Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Electronic Arts. This offers insight into analysts' perspectives on the current state of the company.
  • Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Electronic Arts compared to the broader market.
  • Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Electronic Arts's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of Electronic Arts's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Electronic Arts analyst ratings.

All You Need to Know About Electronic Arts

EA is one of the world's largest third-party video game publishers and has transitioned from a console-based video game publisher to the one of the largest publishers on consoles, PC, and mobile. The firm owns number of large franchises, including Madden, EA Sports FC (formerly FIFA), Battlefield, Apex Legends, Mass Effect, Dragon's Age, and Need for Speed.

Electronic Arts's Economic Impact: An Analysis

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: Electronic Arts's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2024, the company experienced a revenue decline of approximately -5.07%. This indicates a decrease in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Communication Services sector.

Net Margin: Electronic Arts's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 10.23% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Electronic Arts's ROE excels beyond industry benchmarks, reaching 2.42%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.35%, the company showcases effective utilization of assets.

Debt Management: Electronic Arts's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.26.

Analyst Ratings: Simplified

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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