Raymond James is taking a wait-and-see approach to video game maker Electronic Arts after the company lowered its full-year guidance. The firm downgraded the stock to “outperform” from “outperform” but maintained its price target of $170 per share, which represents a 19.4% upside from Wednesday’s closing price. Electronic Arts said it expects net bookings for the full fiscal year to be between $7 billion and $7.15 billion. Previously, the company had guided for a price of $7.5 billion to $7.8 billion. The company said its football series “EA Sports FC” and “Dragon Age” were underperforming. The stock last traded down more than 14%. EA 1D Peak EA shares on Thursday “The severity of the gap is concerning,” analyst Andrew Marok wrote in a note Thursday. “Given low visibility of near-term trends for the company’s flagship product and doubts about its future execution, we take a wait-and-see approach.” Limited clarity on expected earnings is another concern, the analyst said. While the company has opportunities to cut costs, such as spending less on marketing, Mallock believes near-term estimates are riskier. BMO Capital Markets also downgraded EA’s shares to market from outperform after its guidance disappointed. Analyst Brian Pitz wrote in a note that EA “is not involved right now.” “Our lack of visibility into EA’s upcoming product line makes us hesitant on the name, as it’s unclear what the catalysts will be for growth in fiscal 2026.” Pitts lowered his stock price target to $145 from $160 , which means the upside potential is only 2%. Analysts are overall mixed on the stock. Of the 28 firms covering the stock, 13 rate it a buy or strong buy, while the remaining 15 rate it a hold, according to LSEG. The average price target implies upside of about 14%.
ABOUT US
Our news website delivers comprehensive coverage on US news, economy, politics, and world events, ensuring you stay informed on the latest developments. We provide timely and accurate news to keep you updated on the most important stories. Stay connected with us for in-depth analysis and breaking news from around the globe.
Contact us: contact@realtimeheadlines.com
© Real Times Headlines - 2024 | All Rights Reserved