Jefferies raises Nvidia stock price target to $205 on strong demand
On Wednesday, TD Cowen analyst Doug Creutz revised the price target for Electronic Arts (NASDAQ:EA) stock, reducing it to $160 from the previous target of $183, while continuing to endorse the stock with a Buy rating. The adjustment follows Electronic Arts’ third quarter results, which aligned with preliminary figures released on January 22. With a current market capitalization of $33.5 billion and trading at a P/E ratio of 32.4, InvestingPro analysis indicates the stock is currently slightly undervalued relative to its Fair Value.
Creutz’s commentary shed light on the company’s performance and expectations, noting that while Electronic Arts met its Q3 bookings and EBIT expectations, and upheld the forecasted bookings guidance for FY25, they also indicated that Free Cash (FC) trends have seen significant improvement since the January 16 update. The company maintains impressive fundamentals with a robust gross profit margin of 78.6% and strong cash flows, though revenue showed a slight decline of 2.4% in the last twelve months. Despite this positive development, the analyst has chosen to lower estimates, expressing a cautious stance that mirrors the company’s guidance, which does not anticipate the recent strength in FC to persist until the end of the quarter.
The revised financial projections by TD Cowen include a decrease in FY25 bookings estimate from $7.71 billion to $7.14 billion, marking a 4% year-over-year decline. Additionally, the firm has reduced its non-GAAP EBIT forecast from $2.52 billion to $2.08 billion, a 7% year-over-year decrease, and adjusted EPS from $7.96 to $6.64, reflecting a 4% year-over-year reduction.
Creutz also emphasized the potential for upside to both FY25 and FY26 estimates if the recent FC strength does continue through the end of the quarter. The new price target of $160 is based on a 14 times multiple of FY27 adjusted EBITDA, as per the analyst’s valuation model. Despite the lowered price target, TD Cowen’s reiteration of the Buy rating suggests continued confidence in the stock’s long-term value. InvestingPro analysis reveals several additional insights, including that the stock’s RSI suggests oversold territory, with 10+ more exclusive ProTips available to subscribers. For comprehensive analysis including detailed valuation metrics and future growth prospects, investors can access the full Pro Research Report, part of InvestingPro’s coverage of 1,400+ US stocks.
In other recent news, Electronic Arts has experienced significant changes in financial predictions from various analysts. UBS analyst Christopher Schoell revised the price target for Electronic Arts shares, reducing it from $160.00 to $138.00, following the company’s recent financial disclosures. It was noted that Electronic Arts pre-announced its fiscal third-quarter bookings and revised its fiscal 2025 bookings guidance downward due to weaker performance in global football and Dragon Age.
Similarly, Benchmark analysts adjusted their outlook on Electronic Arts shares, reducing the price target from $163.00 to $140.00, reflecting the company’s third-quarter fiscal year 2025 earnings. BMO Capital Markets also adjusted its price target for Electronic Arts shares, bringing it down from $145.00 to $142.00.
Goldman Sachs analyst Eric Sheridan revised the 12-month price target for Electronic Arts shares to $135 from the previous target of $140, following the company’s third fiscal quarter 2025 report. However, BofA Securities analyst Omar Dessouky updated the investment firm’s outlook on Electronic Arts, raising the video game company’s price target from $130.00 to $132.00.
These adjustments are recent developments that have resulted from Electronic Arts’ performance in the recent fiscal quarter and its future projections.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.