Bank of America Securities analyst Omar Dessouky has reiterated their neutral stance on EA stock, giving a Hold rating today.
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Omar Dessouky has given his Hold rating due to a combination of factors related to Electronic Arts’ current market position and future growth potential. The recent challenges faced by EA’s FC franchise were attributed to gameplay tuning issues rather than structural problems, which are generally more difficult to resolve. However, the stagnation in player upgrades and a flat year-over-year player base signal potential difficulties in attracting new players, especially given the franchise’s extensive market penetration. This places the onus on EA to prove that FC can maintain steady long-term growth.
In addition, while there are plans to launch Battlefield in fiscal year 2026, the competitive landscape, including the potential release of major titles like GTA 6, could affect its success. Although management has addressed some gameplay concerns in FC, the upcoming quarter’s guidance does not account for a sustained improvement in momentum, raising uncertainty about future performance. Consequently, while there is a slight increase in the price objective due to adjusted earnings expectations, the overall outlook remains cautious, justifying the Hold rating.
Dessouky covers the Communication Services sector, focusing on stocks such as Electronic Arts, Take-Two, and Magnite. According to TipRanks, Dessouky has an average return of 33.4% and a 56.47% success rate on recommended stocks.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $150.00 price target.