In a report released yesterday, Cory Carpenter from J.P. Morgan maintained a Hold rating on Electronic Arts (EA – Research Report), with a price target of $125.00.
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Cory Carpenter has given his Hold rating due to a combination of factors affecting Electronic Arts. The company has shown improvement in its FC bookings as growth returned following recent gameplay updates, and EA’s management has addressed previous headwinds with significant measures like a $1 billion accelerated buyback. However, the analyst expresses caution, noting that the quick turnaround in trends needs to be observed for a longer period to confirm sustained growth, which leads to the Hold rating.
Additionally, despite the positive outlook for FY26 with expected bookings growth and a promising game pipeline, including potential releases like Battlefield and College Football 26, there are still concerns about EA’s inconsistent execution in non-sports franchises and the competitive nature of the video game market. While the price target has been raised to $125 due to improved FC trends, the ongoing volatility and challenges prevent a more aggressive rating at this time.
According to TipRanks, Carpenter is an analyst with an average return of -7.6% and a 35.62% success rate. Carpenter covers the Communication Services sector, focusing on stocks such as Match Group, Electronic Arts, and Take-Two.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $150.00 price target.