BMO cuts EA stock price target to $142 from $145, keeps rating

Published 05/02/2025, 17:08
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On Wednesday, BMO Capital Markets adjusted its price target for Electronic Arts (NASDAQ:EA) shares, bringing it down from $145.00 to $142.00 while retaining a Market Perform rating on the stock. The stock has experienced significant pressure, down 17.12% year-to-date, with analyst targets ranging from $125 to $183. According to InvestingPro data, EA maintains a GOOD financial health score, with strong cash flows and solid balance sheet metrics. The adjustment comes after Electronic Arts provided additional details regarding the third fiscal quarter underperformance in EA Sports FC 25. Following an update on January 16, the game has shown signs of growth.

The company has also shed light on its upcoming titles, notably mentioning that the next installment in the Battlefield series is expected to be released in FY26. Despite the increased clarity on what’s to come, BMO Capital analysts expressed concerns about potential challenges facing EA’s FY26 lineup, specifically due to the anticipated release of GTA VI in Fall 2025, which falls within the same fiscal year. With a P/E ratio of 32.8 and revenue declining 2.42% over the last twelve months, investors seeking deeper insights can access comprehensive analysis through InvestingPro’s detailed research reports.

The BMO Capital analyst elaborated on the decision to modify the price target, stating that while the enhanced pipeline visibility is beneficial, there are still possible obstacles that could impact the performance of EA’s future game lineup. The firm has decided to maintain the Market Perform rating, adjusting the price target slightly to reflect the need for a consistent return to growth for EA Sports FC.

The report from BMO Capital indicates a cautious stance on Electronic Arts’ stock, with a focus on the company’s ability to navigate upcoming market dynamics and competition. This price target revision reflects a modest shift in expectations, based on the latest information provided by the company regarding its performance and future plans.

In other recent news, Electronic Arts (EA) has been the subject of several adjustments in stock price targets by various financial firms. Goldman Sachs revised the 12-month price target for EA shares, reducing it to $135 from the previous target of $140, while maintaining a Neutral rating on the stock. This followed EA’s third fiscal quarter 2025 report, which exhibited a year-over-year decline in net bookings for EA Global Football.

BofA Securities raised EA’s price target from $130.00 to $132.00, maintaining a Neutral rating, after concerns about a potential structural decline in EA’s football franchise. Oppenheimer reiterated its Outperform rating and $140.00 price target for EA shares, while Citi adjusted the price target for EA shares, reducing it to $139 from the previous $163, and maintained a Neutral rating on the stock.

These recent developments also include EA’s announcement to acquire TRACAB Technologies, a leader in advanced sports optical tracking and analysis solutions. This acquisition is expected to enhance EA’s ability to create realistic and immersive sports experiences in their games. The acquisition is expected to close in EA’s first fiscal quarter of FY26.

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