Credit Suisse analyst Stephen Ju raised the firm’s price target on Electronic Arts to $161 from $142 and keeps an Outperform rating on the shares ahead of quarterly results. Anticipating Battlefield will return in fiscal 2025, followed by new Star Wars games alongside the return of other franchises from EA‘s history – Mass Effect, Dragon Age, and The Sims, the firm believes it is entering a larger product development cycle and 2024 should mark trough EPS. Credit Suisse expects EPS to rise from $7 for 2024 to over $12 by 2029 – the path may not be linear given the potential for shifting release dates but the value creation cycle should be the same and thus informs the firm’s DCF-driven price target.
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