What 9 Analyst Ratings Have To Say About Electronic Arts

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9 analysts have shared their evaluations of Electronic Arts EA during the recent three months, expressing a mix of bullish and bearish perspectives.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 5 3 0 0
Last 30D 0 1 1 0 0
1M Ago 1 4 1 0 0
2M Ago 0 0 1 0 0
3M Ago 0 0 0 0 0

Analysts have recently evaluated Electronic Arts and provided 12-month price targets. The average target is $151.0, accompanied by a high estimate of $162.00 and a low estimate of $135.00. This current average represents a 0.33% decrease from the previous average price target of $151.50.

Deciphering Analyst Ratings: An In-Depth Analysis

A comprehensive examination of how financial experts perceive Electronic Arts is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Benjamin Soff Deutsche Bank Lowers Hold $150.00 $153.00
Brian Pitz BMO Capital Lowers Outperform $154.00 $160.00
Nick McKay Wedbush Maintains Outperform $162.00 -
Colin Sebastian Baird Lowers Outperform $150.00 $160.00
Nick McKay Wedbush Maintains Outperform $162.00 -
Eric Handler Roth MKM Lowers Neutral $135.00 $140.00
Martin Yang Oppenheimer Maintains Outperform $150.00 $150.00
Mike Hickey Benchmark Maintains Buy $153.00 -
Eric Sheridan UBS Lowers Neutral $143.00 $146.00

Key Insights:

  • Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Electronic Arts. This information offers a snapshot of how analysts perceive the current state of the company.
  • Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Electronic Arts compared to the broader market.
  • Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Electronic Arts's stock. This examination reveals shifts in analysts' expectations over time.

For valuable insights into Electronic Arts's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Electronic Arts analyst ratings.

Discovering Electronic Arts: A Closer Look

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 (formerly FIFA), Battlefield, Apex Legends, Mass Effect, Dragon's Age, and Need for Speed.

Electronic Arts: Financial Performance Dissected

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Decline in Revenue: Over the 3 months period, Electronic Arts faced challenges, resulting in a decline of approximately -8.53% in revenue growth as of 31 March, 2024. This signifies a reduction 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 financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 10.23%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 2.42%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Electronic Arts's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 1.35%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Electronic Arts's debt-to-equity ratio is below the industry average. With a ratio of 0.25, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Understanding the Relevance of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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

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