Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
On Monday, Benchmark analyst Mike Hickey adjusted the price target for Electronic Arts (NASDAQ:EA) shares, increasing it to $160 from the previous $140, and reaffirmed a Buy rating on the stock. The new target falls within the broader analyst range of $125-$179, with EA currently trading at $144.60. According to InvestingPro data, EA demonstrates strong financial health with a 79.38% gross profit margin and robust market presence valued at $37.91 billion. Hickey’s assessment suggests that a potential delay in the release of Grand Theft Auto VI by Take-Two Interactive (NASDAQ:TTWO) could be advantageous for Electronic Arts.
According to Hickey, if the launch of GTA VI is postponed to early 2026, Electronic Arts could benefit from an unchallenged fourth quarter in 2025. This period is critical for game releases, and without direct competition from Rockstar’s highly anticipated title, EA’s own franchise, Battlefield, might capture more attention during the holiday season. InvestingPro analysis reveals EA’s solid financial foundation, with more cash than debt on its balance sheet and sufficient cash flows to cover interest payments - just two of several bullish indicators available to Pro subscribers.
The analyst highlighted that Rockstar’s decision to allow more development time for GTA VI could reduce the need for excessive crunch, a practice that has been criticized in the gaming industry. The extended development period is also likely to result in a higher quality game, which traditionally leads to stronger long-term sales.
Hickey noted the positive community response to Battlefield Labs, an initiative by Electronic Arts to foster engagement and excitement around the Battlefield franchise. This buzz is seen as a strategic advantage for EA, particularly if it coincides with a delay in GTA VI’s release.
The analyst emphasized the importance of official announcements regarding the timing of GTA VI’s launch. Any postponement, even a brief one, is expected to not only enhance Rockstar’s eventual results but also provide Electronic Arts with a significant opportunity to dominate a major release window with its Battlefield series.
In other recent news, Electronic Arts has faced several financial adjustments and analyst evaluations. TD Cowen revised the company’s stock price target to $160, maintaining a Buy rating despite a decrease in fiscal year 2025 bookings and profit estimates. UBS also adjusted its price target for Electronic Arts to $138, citing reduced fiscal third-quarter bookings and a downward revision in fiscal 2025 guidance due to weaker performance in global football and Dragon Age. Meanwhile, Citi reiterated a Neutral rating with a $139 price target, highlighting potential growth from future releases of FC and Battlefield in fiscal year 2026.
DA Davidson maintained a Neutral rating with a $140 price target, noting an increase in player engagement for "FIFA 25" but also a decline in "Apex Legends" market share. The firm emphasized the challenges Electronic Arts faces with its upcoming projects, particularly as it approaches fiscal year 2026. The analysis from DA Davidson also pointed to Electronic Arts’ strong intellectual property portfolio as a competitive advantage, although caution was advised regarding near-term prospects.
These developments reflect a mixed outlook for Electronic Arts, with various analysts expressing both optimism and caution about the company’s future performance. While some anticipate growth driven by new releases, others remain wary of ongoing challenges in maintaining player engagement and market share.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.