Analysts react to EA Investor Day

In notes Wednesday, analysts offered varied reactions to Electronic Arts’ (EA) recent Investor Day, highlighting long-term optimism but cautioning on near-term challenges.

Bank of Americareiterated a Buy rating with a price objective of $170, emphasizing EA’s strong positioning to outpace industry growth in fiscal years 2026 and 2027.

BofA highlighted the company’s ability to leverage its vast resources and technology, including generative AI, to build higher-quality content faster. The note underscored EA’s increasing moat through its large online community, which supports scaling, engagement, and monetization.

While BofA acknowledged EA’s ambitions beyond gaming, such as advertising and sponsorships, they noted it’s hard to underwrite these opportunities until proven.

Deutsche Bank was similarly upbeat, noting that EA is trending towards the high end of its fiscal 2025 bookings guidance, driven by strong performance in College Football and Madden, though slightly offset by weaker-than-expected results from Apex Legends.

Deutsche Bank appreciated EA’s multi-year financial framework, highlighting accelerating growth and operating margin expansion through fiscal 2027. They were encouraged by EA’s $5 billion share buyback program but remained cautious about near-term execution.

Meanwhile, analysts at Morgan Stanley focused on potential catalysts, including the upcoming beta test of EA’s new Sports App and key game launches like Battlefield and The Sims. They viewed successful execution in non-sports titles as a critical driver of sentiment and earnings, maintaining a balanced view on the stock.

Jefferies echoed long-term optimism but raised concerns about the timing of the game pipeline. They acknowledged the solid outlook but noted that investors seeking near-term assurances might have been left wanting more, especially regarding fiscal 2026 bookings.

Source: Investing.com