In the preceding three months, 18 analysts have released ratings for Electronic Arts EA, presenting a wide array of perspectives from bullish to bearish.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 6 | 7 | 5 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 1 | 0 | 0 | 0 |
| 2M Ago | 2 | 1 | 3 | 0 | 0 |
| 3M Ago | 4 | 4 | 2 | 0 | 0 |
Insights from analysts' 12-month price targets are revealed, presenting an average target of $163.22, a high estimate of $183.00, and a low estimate of $150.00. This current average reflects an increase of 4.41% from the previous average price target of $156.33.
Decoding Analyst Ratings: A Detailed Look
In examining recent analyst actions, we gain insights into how financial experts perceive Electronic Arts. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Nick McKay | Wedbush | Maintains | Outperform | $170.00 | $170.00 |
| Brian Pitz | BMO Capital | Maintains | Outperform | $154.00 | $154.00 |
| Mike Hickey | Benchmark | Maintains | Buy | $163.00 | $163.00 |
| Eric Handler | Roth MKM | Maintains | Neutral | $154.00 | $154.00 |
| Colin Sebastian | Baird | Maintains | Outperform | $170.00 | $170.00 |
| Brian Nowak | Morgan Stanley | Maintains | Equal-Weight | $150.00 | $150.00 |
| Benjamin Soff | Deutsche Bank | Maintains | Hold | $160.00 | $160.00 |
| Mike Hickey | Benchmark | Maintains | Buy | $163.00 | $163.00 |
| Doug Creutz | TD Cowen | Raises | Buy | $183.00 | $163.00 |
| Omar Dessouky | B of A Securities | Raises | Buy | $170.00 | $150.00 |
| Mike Hickey | Benchmark | Raises | Buy | $163.00 | $153.00 |
| Andrew Marok | Raymond James | Raises | Outperform | $170.00 | $155.00 |
| Nick McKay | Wedbush | Raises | Outperform | $170.00 | $162.00 |
| Drew Crum | Stifel | Raises | Buy | $167.00 | $165.00 |
| Eric Sheridan | UBS | Raises | Neutral | $155.00 | $143.00 |
| Colin Sebastian | Baird | Raises | Outperform | $170.00 | $150.00 |
| Brian Pitz | BMO Capital | Maintains | Outperform | $154.00 | $154.00 |
| Eric Handler | Roth MKM | Raises | Neutral | $152.00 | $135.00 |
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: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Electronic Arts compared to the broader market.
- Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Electronic Arts's market standing. Stay informed and make data-driven decisions with our Ratings Table.
Stay up to date on Electronic Arts analyst ratings.
Delving into Electronic Arts's Background
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 Financial Performance
Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.
Revenue Growth: Electronic Arts's revenue growth over a period of 3 months has faced challenges. As of 30 June, 2024, the company experienced a revenue decline of approximately -13.72%. 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 is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 16.87%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): Electronic Arts's ROE excels beyond industry benchmarks, reaching 3.76%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Electronic Arts's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 2.14%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.26.
What Are Analyst Ratings?
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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