Analyst Matthew Cost from Morgan Stanley maintained a Hold rating on Electronic Arts (EA – Research Report) and keeping the price target at $150.00.
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Matthew Cost’s rating is based on the recent performance issues faced by Electronic Arts, particularly with its FC franchise. The company experienced declines in bookings and EPS, attributed to weaker user acquisition and engagement trends. These issues were primarily due to players’ preference for older versions of the game and a lackluster response to new enhancements.
Despite these challenges, Electronic Arts has made efforts to address them through a recent gameplay update that has shown positive early results. Management views these problems as temporary and remains optimistic about long-term growth, while cautioning that FY25 guidance reflects the recent declines conservatively. Additionally, the anticipated release of the Battlefield game remains on track, further supporting the Hold rating as the company navigates these transitional challenges.
Cost covers the Technology sector, focusing on stocks such as AppLovin, Unity Software, and Trade Desk. According to TipRanks, Cost has an average return of -1.7% and a 55.38% success rate on recommended stocks.
In another report released today, Bank of America Securities also reiterated a Hold rating on the stock with a $132.00 price target.