Expert Outlook: Electronic Arts Through The Eyes Of 16 Analysts

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In the preceding three months, 16 analysts have released ratings for Electronic Arts EA, presenting a wide array of perspectives from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 2 4 10 0 0
Last 30D 1 0 0 0 0
1M Ago 1 0 4 0 0
2M Ago 0 4 5 0 0
3M Ago 0 0 1 0 0

Analysts have recently evaluated Electronic Arts and provided 12-month price targets. The average target is $147.31, accompanied by a high estimate of $173.00 and a low estimate of $130.00. A decline of 8.77% from the prior average price target is evident in the current average.

price target chart

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
Edward Woo Ascendiant Capital Raises Buy $160.00 $157.00
Wyatt Swanson DA Davidson Announces Neutral $140.00 -
Mike Hickey Benchmark Lowers Buy $140.00 $163.00
Brian Pitz BMO Capital Lowers Market Perform $142.00 $145.00
Omar Dessouky B of A Securities Raises Neutral $132.00 $130.00
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

Key Insights:

  • Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Electronic Arts. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Electronic Arts compared to the broader market.
  • Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Electronic Arts's stock. This examination reveals shifts in analysts' expectations over time.

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.

Discovering Electronic Arts: A Closer Look

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.

Electronic Arts: A Financial Overview

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's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2024, the company experienced a revenue decline of approximately -3.19%. This indicates a decrease in the company's top-line earnings. When compared to others in the Communication Services sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Electronic Arts's net margin excels beyond industry benchmarks, reaching 15.56%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Electronic Arts's ROE stands out, surpassing industry averages. With an impressive ROE of 3.95%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Electronic Arts's ROA excels beyond industry benchmarks, reaching 2.2%. This signifies efficient management of assets and strong financial health.

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

Understanding the Relevance of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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

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