Electronic Arts stock holds Buy rating as Battlefield 6 shows promise

Investing.com - Electronic Arts (NASDAQ:EA), currently trading at $159.20 and near its 52-week high of $168.50, maintained its Buy rating and $180.00 price target from Benchmark, following the analyst firm’s attendance at the Battlefield 6 reveal event in Los Angeles. According to InvestingPro data, the stock has surged nearly 30% over the past six months, though current valuations suggest it may be trading at a premium to its Fair Value.

Benchmark expressed increased confidence in the title’s commercial and strategic potential after viewing the game presentation, while noting that trailer enthusiasm should be viewed with some caution.

The firm highlighted that positive momentum from Battlefield Labs and early player sentiment appears "grounded and authentic," suggesting genuine interest in the upcoming release.

According to Benchmark, the Battlefield franchise has reached over 100 million global players since its inception, with similar targets rumored for the new title—a milestone they believe hinges on positive reception of the upcoming free-to-play battle royale mode.

The analyst firm suggested that launching this mode near or after Call of Duty’s expected November 14 release "could be a bold and effective strategy" for player retention during a competitive window.

In other recent news, Electronic Arts reported impressive financial results for the first quarter of fiscal year 2026, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $0.79, which was higher than the projected $0.63, and reported revenue of $1.3 billion, exceeding the anticipated $1.24 billion. This strong performance was primarily driven by the success of the EA Sports division. Following these results, TD Cowen raised its price target for Electronic Arts from $172 to $183, maintaining a Buy rating on the stock. Benchmark also reiterated its Buy rating with a price target of $180, noting the company’s net bookings of $1.298 billion and adjusted EPS of $0.25, both of which beat consensus estimates. Additionally, Electronic Arts announced the upcoming launch of Battlefield 6 on October 10, 2025, for major gaming platforms, adding to the company’s positive developments. The game is set in 2027 and features a storyline involving a private military corporation in a post-NATO Europe. These recent developments indicate strong momentum for Electronic Arts in both its financial performance and product offerings.

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