BMO Capital analyst Brian Pitz maintained a Hold rating on Electronic Arts (EA – Research Report) yesterday and set a price target of $142.00.
Brian Pitz has given his Hold rating due to a combination of factors affecting Electronic Arts. One of the primary concerns is the potential competition from Activision’s anticipated release of Tony Hawk Pro Skater 3+4, which could negatively impact EA’s upcoming game, Skate, expected to launch in 2025. The timing of these releases could pose a challenge for EA, as Tony Hawk’s franchise is a well-known competitor in the skateboarding game genre.
Moreover, while EA’s Skate is projected to generate between $50-200 million in bookings for FY26, this figure is relatively minor compared to the company’s overall bookings estimate of $7.26 billion for the same period. The game will adopt a free-to-play model with microtransactions, which may affect its financial success depending on player engagement and conversion rates. These factors contribute to a cautious outlook, justifying the Hold rating as the market assesses the impact of these competitive dynamics.
Pitz covers the Communication Services sector, focusing on stocks such as Take-Two, Electronic Arts, and Netflix. According to TipRanks, Pitz has an average return of 18.0% and a 73.09% success rate on recommended stocks.
In another report released on February 19, D.A. Davidson also initiated coverage with a Hold rating on the stock with a $140.00 price target.