Where Electronic Arts Stands With Analysts

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Ratings for Electronic Arts EA were provided by 12 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 4 7 0 0
Last 30D 0 0 1 0 0
1M Ago 0 4 5 0 0
2M Ago 0 0 1 0 0
3M Ago 1 0 0 0 0

Insights from analysts' 12-month price targets are revealed, presenting an average target of $152.17, a high estimate of $183.00, and a low estimate of $130.00. A 8.15% drop is evident in the current average compared to the previous average price target of $165.67.

price target chart

Interpreting Analyst Ratings: A Closer Look

The standing of Electronic Arts among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below 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
Jason Bazinet Citigroup Lowers Neutral $139.00 $163.00
Martin Yang Oppenheimer Lowers Outperform $140.00 $165.00
Michael Pachter Wedbush Maintains Outperform $173.00 $173.00
Eric Handler Roth MKM Lowers Neutral $134.00 $158.00
Drew Crum Stifel Lowers Hold $133.00 $159.00
Colin Sebastian Baird Lowers Outperform $158.00 $175.00
Omar Dessouky B of A Securities Lowers Neutral $130.00 $170.00
Brian Pitz BMO Capital Lowers Market Perform $145.00 $160.00
Martin Yang Oppenheimer Lowers Outperform $165.00 $170.00
Drew Crum Stifel Lowers Hold $159.00 $167.00
Drew Crum Stifel Maintains Hold $167.00 $167.00
Joseph Bonner Argus Research Raises Buy $183.00 $161.00

Key Insights:

  • Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Electronic Arts. This information offers a snapshot of how analysts perceive the current state of the company.
  • Rating: Analyzing trends, analysts offer qualitative evaluations, ranging 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.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Electronic Arts's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Electronic Arts analyst ratings.

Get to Know Electronic Arts Better

Electronic Arts is one of the largest global developers and publishers of video games. Its most important franchises are the Madden NFL and FC soccer games, which it releases annually. In 2024, it also relaunched its American college football game. Other major franchises include Apex Legends, Battlefield, and The Sims. Typically, about three quarters of the firm's sales are from in-game spending, with the remainder coming from initial game sales.

Understanding the Numbers: Electronic Arts's Finances

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: Electronic Arts displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 5.8%. This indicates a notable increase 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 financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 14.52%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Electronic Arts's ROE excels beyond industry benchmarks, reaching 3.97%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Electronic Arts's ROA stands out, surpassing industry averages. With an impressive ROA of 2.28%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: With a below-average debt-to-equity ratio of 0.26, Electronic Arts adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Significance of Analyst Ratings Explained

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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

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