DZ BANK AG analyst Markus Leistner upgrades $Electronic Arts Inc (EA.US)$ to a buy rating, and adjusts the target price from $135 to $177.
According to TipRanks data, the analyst has a success rate of 70.0% and a total average return of 21.6% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Electronic Arts Inc (EA.US)$'s main analysts recently are as follows:
Electronic Arts (EA) reported fiscal Q2 bookings and adjusted earnings that surpassed the upper end of their guidance and increased their fiscal 2025 forecast. Nevertheless, the analyst indicates a need for more consistent delivery on non-sports titles, expressing a preference for Take-Two (TTWO) as the launch of GTA VI approaches in Fall 2025.
The company experienced a robust earnings beat-and-raise in Q2 amidst heightened expectations, driven by the performance of sports titles which balanced the weaker results from Apex Legends. Additionally, the significant increase in hours played across American Football titles indicates that the introduction of College Football is likely to add value to the overall portfolio rather than detract from it.
The firm indicated that Electronic Arts' second-quarter results surpassed expectations, aligning with the robust initial engagement and monetization seen with College Football. The effective pairing of Madden and College Football appears to be cultivating a broader American football gaming community. This, together with Electronic Arts' established presence in global football (soccer), suggests a foundation for increased recurring revenues.
Note:
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