The Analyst Verdict: Electronic Arts In The Eyes Of 14 Experts

Electronic Arts (NASDAQ:EA) has been analyzed by 14 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

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 2 5 7 0 0
Last 30D 0 1 0 0 0
1M Ago 1 0 0 0 0
2M Ago 0 0 1 0 0
3M Ago 1 4 6 0 0

In the assessment of 12-month price targets, analysts unveil insights for Electronic Arts, presenting an average target of $171.93, a high estimate of $210.00, and a low estimate of $148.00. Marking an increase of 10.92%, the current average surpasses the previous average price target of $155.00.

Deciphering Analyst Ratings: An In-Depth Analysis

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
Alicia Reese Wedbush Maintains Outperform $210.00 $210.00
Eric Handler Roth Capital Raises Buy $185.00 $175.00
Jason Bazinet Citigroup Raises Neutral $153.00 $139.00
Eric Sheridan Goldman Sachs Raises Neutral $155.00 $135.00
Colin Sebastian Baird Raises Outperform $168.00 $158.00
Omar Dessouky B of A Securities Raises Neutral $166.00 $150.00
Michael Pachter Wedbush Raises Outperform $210.00 $179.00
Mark Zgutowicz Benchmark Raises Buy $180.00 $160.00
Eric Sheridan UBS Raises Neutral $167.00 $152.00
Martin Yang Oppenheimer Raises Outperform $185.00 $170.00
Brian Nowak Morgan Stanley Raises Equal-Weight $148.00 $135.00
David Karnovsky JP Morgan Raises Neutral $160.00 $135.00
Omar Dessouky B of A Securities Raises Neutral $150.00 $132.00
Martin Yang Oppenheimer Raises Outperform $170.00 $140.00

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: 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: Understanding forecasts, analysts offer estimates for Electronic Arts's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Electronic Arts's market position. Stay informed and make data-driven decisions with the assistance of 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.

Electronic Arts: A Financial Overview

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Revenue Growth: Over the 3M period, Electronic Arts showcased positive performance, achieving a revenue growth rate of 6.52% as of 31 March, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Communication Services sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 13.4%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Electronic Arts's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 3.68%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Electronic Arts's ROA stands out, surpassing industry averages. With an impressive ROA of 1.97%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Electronic Arts's debt-to-equity ratio is below the industry average. With a ratio of 0.31, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Analyst Ratings: Simplified

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 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.

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