Critical Insights From Electronic Arts Analyst Ratings: What You Need To Know

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In the preceding three months, 7 analysts have released ratings for Electronic Arts EA, presenting a wide array of perspectives from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 0 3 4 0 0
Last 30D 0 1 0 0 0
1M Ago 0 0 0 0 0
2M Ago 0 0 1 0 0
3M Ago 0 2 3 0 0

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $150.57, along with a high estimate of $162.00 and a low estimate of $139.00. This upward trend is evident, with the current average reflecting a 6.79% increase from the previous average price target of $141.00.

Analyzing Analyst Ratings: A Detailed Breakdown

The standing of Electronic Arts among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Brian Pitz BMO Capital Announces Outperform $160.00 -
Benjamin Soff Deutsche Bank Raises Hold $150.00 $135.00
Eric Handler Roth MKM Raises Neutral $140.00 $138.00
Alexia Quadrani JP Morgan Raises Neutral $139.00 $132.00
Nick McKay Wedbush Raises Outperform $162.00 $155.00
Nick McKay Wedbush Maintains Outperform $155.00 -
Conor Fitzgerald Wells Fargo Raises Equal-Weight $148.00 $145.00

Key Insights:

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  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Electronic Arts. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Electronic Arts compared to the broader market.
  • Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Capture valuable insights into Electronic Arts's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Electronic Arts analyst ratings.

Delving into Electronic Arts's Background

EA is one of the world's largest third-party video game publishers and has transitioned from a console-based video game publisher to the one of the largest publishers on consoles, PC, and mobile. The firm owns number of large franchises, including Madden, EA Sports FC, Battlefield, Apex Legends, Mass Effect, Dragon's Age, and Need for Speed.

Electronic Arts: A Financial Overview

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: Over the 3 months period, Electronic Arts showcased positive performance, achieving a revenue growth rate of 0.53% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Communication Services sector.

Net Margin: Electronic Arts's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 20.85% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Electronic Arts's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.35% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 3.04%, the company showcases effective utilization of assets.

Debt Management: With a below-average debt-to-equity ratio of 0.26, Electronic Arts adopts a prudent financial strategy, indicating a balanced approach to debt management.

What Are Analyst Ratings?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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