Beyond The Numbers: 16 Analysts Discuss Electronic Arts Stock

In the last three months, 16 analysts have published ratings on Electronic Arts EA, offering a diverse range of perspectives from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $146.88, a high estimate of $173.00, and a low estimate of $130.00. This current average represents a 8.01% decrease from the previous average price target of $159.67.

Analyzing Analyst Ratings: A Detailed Breakdown

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.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Electronic Arts. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Electronic Arts compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Electronic Arts's future value. Examining the 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.

Negative Revenue Trend: Examining Electronic Arts's financials over 3 months reveals challenges. As of 31 December, 2024, the company experienced a decline of approximately -3.19% in revenue growth, reflecting a decrease in 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 is impressive, surpassing industry averages. With a net margin of 15.56%, the company demonstrates strong profitability and effective cost management.

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 financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.2%, the company showcases efficient use of assets and strong financial health.

Debt Management: Electronic Arts's debt-to-equity ratio is below the industry average. With a ratio of 0.26, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Core of Analyst Ratings: What Every Investor Should Know

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.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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