Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - DA Davidson raised its price target on Electronic Arts (NASDAQ:EA) to $160.00 from $150.00 on Monday, while maintaining a Neutral rating on the video game publisher’s stock. The company’s shares, currently trading at $175.31, have shown strong momentum with a 26% gain over the past six months and are currently trading near their 52-week high.
The research firm cited increased confidence in Electronic Arts’ outlook, though it expressed concerns about the company’s challenging setup for the remainder of the year. The new price target implies a multiple of 20 times DA Davidson’s normalized earnings per share estimate. According to InvestingPro data, EA currently trades at a P/E ratio of 43.32, suggesting a premium valuation compared to historical averages.
DA Davidson noted positive sentiment toward the upcoming Battlefield 6 release but highlighted reports from Ars Technica suggesting the game has targeted reaching 100 million players over a period including post-launch. The firm described these as "lofty expectations" that would be "challenging to reach."
The research firm also expressed concern about Electronic Arts’ American Football business, which faces difficult comparisons after the "incredibly successful" College Football 25 launch. Despite these challenging comparisons, the segment is still expected to grow in the second half of the year.
DA Davidson’s Neutral rating reflects its view that Electronic Arts needs Battlefield 6 to launch successfully while simultaneously growing both its American Football business in the second half of the year and its Global Football business throughout the year. With a market capitalization of $43.83B and moderate revenue growth of 2.41%, InvestingPro analysis reveals 13 additional key insights about EA’s financial health and growth prospects, available in the comprehensive Pro Research Report.
In other recent news, Electronic Arts Inc . (EA) announced a partnership with the National Hockey League to integrate official NHL EDGE data into EA SPORTS NHL 26, enhancing the game’s realism with advanced Puck and Player Tracking technology. EA also revealed that the Tkachuk family will grace the deluxe edition cover of EA Sports NHL 26, which is set to launch on September 12, 2025. The company further confirmed that Battlefield 6 will be released on October 10, 2025, featuring a storyline set in 2027 with enhanced gameplay features. Analyst firm Oppenheimer maintained its Outperform rating and $185 price target for EA, citing the success of the Battlefield 6 beta test, which attracted over 5 million players. Benchmark also upheld its Buy rating and $180 price target, expressing confidence in the game’s commercial potential following its reveal event. These developments highlight EA’s strategic moves in both its NHL and Battlefield franchises, reflecting ongoing interest from both consumers and analysts.
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