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Investing.com - Wells Fargo (NYSE:WFC) has initiated coverage on Electronic Arts (NASDAQ:EA), currently trading at $151.68 with a market capitalization of $38.11 billion, with an Equal Weight rating and a price target of $168.00. According to InvestingPro data, EA has shown strong momentum with a 30.5% price return over the past six months.
The firm’s estimates are largely in line with consensus forecasts, according to its research note released Monday. Wells Fargo’s fiscal year 2026 bookings estimates match the broader market expectations. Based on InvestingPro’s Fair Value analysis, EA appears fairly valued at current levels, with the stock trading at a P/E ratio of 35.5x.
The analysis includes lower second-quarter fiscal 2026 bookings projections driven by College Football, offset by modestly higher third-quarter fiscal 2026 bookings expectations due to easier FIFA Club comparisons and better Battlefield sale forecasts.
Wells Fargo’s $168 price target implies a multiple of 18 times fiscal year 2028 free cash flow per share of $9.31, which is roughly in line with consensus estimates of $9.07 per share.
The firm noted that Electronic Arts has historically traded at an average price-to-free cash flow multiple of 18 times for the fiscal year plus two years ahead, based on trading patterns from 2019 through 2025.
In other recent news, Electronic Arts is preparing to release its fiscal first-quarter 2026 earnings report, with net bookings projected between $1.175 billion and $1.275 billion. Benchmark analysts have reiterated their Buy rating for the company, setting a price target of $180. This follows a strong performance in the previous quarter, particularly in the sports gaming division, with notable growth in EA SPORTS FC and FC Mobile. Meanwhile, TD Cowen has also maintained a Buy rating, raising their price target to $172, citing Electronic Arts’ impressive financial results that surpassed expectations. The firm is optimistic about upcoming launches for the Battlefield and Skate franchises, further bolstering their positive outlook. However, MoffettNathanson has downgraded Electronic Arts to a Neutral rating, with a price target of $163, following a significant stock increase earlier in the year. On the product front, Electronic Arts has launched F1 25, introducing new gameplay features and enhanced experiences for players. These developments reflect the company’s ongoing strategic efforts and market performance.
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