Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Raymond (NSE:RYMD) James has reiterated its Market Perform rating on Electronic Arts (NASDAQ:EA), which is trading near its 52-week high of $176.62, following analyst testing of the upcoming Battlefield 6 game. The stock has shown remarkable momentum with a 9.39% gain in the past week.
The firm noted that while Battlefield 6 may not be "genre-redefining," it could benefit from what they described as "a weak year for Call of Duty," potentially attracting casual players looking for alternatives. According to InvestingPro data, EA maintains a strong financial health score, with robust cash flows and moderate debt levels. InvestingPro offers 16 additional investment tips for EA, along with comprehensive analysis in its Pro Research Report.
Raymond James indicated the game should help get the franchise "back on level footing" and could raise "the ceiling of the distribution of unit sales outcomes" for Electronic Arts.
The analysis highlighted that the battle royale/Firestorm mode was not included in the beta testing period but will be available in the Battlefield Labs test environment in coming weeks, with an expected launch a few weeks or months after the main game release.
The firm emphasized the importance of this free-to-play component as "a key entry point for mass audiences" but stated it was "too early to call" on its quality with "no gameplay footage yet, let alone hands-on testing."
In other recent news, Electronic Arts has seen several notable developments. DA Davidson raised its price target for Electronic Arts to $160 from $150, maintaining a Neutral rating, citing increased confidence in the company’s outlook despite some concerns for the rest of the year. Meanwhile, Oppenheimer has maintained its Outperform rating and a $185 price target following a successful Battlefield 6 beta test, which saw over 5 million participants and a significant player count peak on Steam. Benchmark also maintained its Buy rating with a $180 price target, expressing confidence in Battlefield 6’s commercial potential after a reveal event.
Electronic Arts announced a partnership with the National Hockey League to integrate NHL EDGE data into EA SPORTS NHL 26, enhancing the game’s realism with advanced tracking technology. Additionally, EA Sports NHL 26 will feature the Tkachuk family on its deluxe edition cover, marking a unique presentation of a multi-generational hockey family. These recent developments highlight Electronic Arts’ ongoing efforts to enhance its gaming portfolio and maintain strong relationships with partners and analysts.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.