US stock futures edge lower after S&P 500 hits record high; PCE data in focus
Tuesday, Oppenheimer analysts adjusted the price target for Electronic Arts (NASDAQ:EA) stock, reducing it to $165 from the previous $170, while maintaining an Outperform rating. The adjustment comes as the firm anticipates a negative trend in investor sentiment leading into EA's third fiscal quarter 2025 earnings.
Oppenheimer analysts noted that the decreased player base of Apex Legends and modest sales of Dragon Age are likely to prevent EA from raising its fiscal year 2025 guidance.
The primary concern for investors is how the company's management will address expectations for fiscal year 2026 during the upcoming earnings call.
The competitive landscape for multiplayer shooters is intensifying this year, and with the release date of Grand Theft Auto 6 (GTA 6) still uncertain, projections for EA's growth in fiscal year 2026 are more variable than previously estimated.
The analysts noted the "potential of Battlefield being pushed into FY27 if new games like Marvel Rivals and Delta Force pick up momentum into mid-2025 and GTA 6 launch in holiday 2025. We expect investor sentiment to weaken near term."
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