Benchmark Reiterates Buy Rating on Electronic Arts (EA)

Benchmark analyst Mike Hickey reiterated a Buy rating and $163.00 price target on Electronic Arts (NASDAQ: EA).

The analyst said, "EA announced preliminary results for its fiscal 3Q, revealing underperformance in net bookings due to weaker-than-expected results from Dragon Age and EA SPORTS FC 25. The company has revised its fiscal 2025 outlook, projecting a mid-single-digit decline in live services net bookings, with Global Football driving the majority of the change. Despite these challenges, EA remains confident in its long-term strategy and anticipates a return to growth in fiscal 2026."

"The disappointing Q3 performance from Dragon Age and EA SPORTS FC 25 was not a surprise, as we highlighted both as risks in our earnings preview note, where we lowered our estimates for Q3 and fiscal 2025. However, the magnitude of the earnings revisions, particularly for EA SPORTS FC 25, exceeded expectations, given its strong growth out of Q2. The abrupt loss of momentum, following a fiscal 2025 guidance raise, raises questions about the franchise’s growth durability. While we see strong medium-term growth potential, the weakness in EA SPORTS FC 25, a key driver of recurrent net bookings, gives us pause. We await EA’s 02-04 earnings call to better understand these challenges and the path to growth," he added

For an analyst ratings summary and ratings history on Electronic Arts click here. For more ratings news on Electronic Arts click here.

Shares of Electronic Arts closed at $142.35 yesterday.

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