Forecasting The Future: 17 Analyst Projections For Electronic Arts

Electronic Arts EA underwent analysis by 17 analysts in the last quarter, revealing a spectrum of viewpoints 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.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $144.0, with a high estimate of $173.00 and a low estimate of $130.00. A 6.76% drop is evident in the current average compared to the previous average price target of $154.44.

Interpreting Analyst Ratings: A Closer 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 | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |David Karnovsky |JP Morgan |Raises |Neutral | $135.00|$125.00 | |Brian Nowak |Morgan Stanley |Lowers |Equal-Weight | $135.00|$150.00 | |Eric Sheridan |UBS |Raises |Neutral | $152.00|$138.00 | |Mike Hickey |Benchmark |Raises |Buy | $160.00|$140.00 | |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 |

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 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.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Electronic Arts's market standing. Stay informed and make well-considered 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.

Unraveling the Financial Story of Electronic Arts

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: Electronic Arts's revenue growth over a period of 3M 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. 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 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): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.2%, the company showcases effective utilization of assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.26.

How Are Analyst Ratings Determined?

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.

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.