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Investing.com -- Wells Fargo initiated coverage on Electronic Arts (NASDAQ:EA) with an Equal Weight rating and a $168 price target, while assigning Take-Two Interactive (NASDAQ:TTWO) an Overweight rating with a $265 price target in notes on Monday.
The firm highlighted significant upcoming catalysts for both companies, including Battlefield 6, the 2026 World Cup, and Grand Theft Auto 6.
On EA, Wells Fargo (NYSE:WFC) said it sees “two NT catalysts: Battlefield launch (F3Q:26) and the World Cup (F1Q:27).”
Analysts estimate EA’s guidance implies roughly 13 million Battlefield 6 units in fiscal 2026, calling that “prudent, but not overly conservative.”
However, the firm flagged lingering negative sentiment from Battlefield 2042 and potential cannibalisation from a free-to-play battle royale mode.
Live services monetisation remains a key challenge. “We see a steep hill to climb,” analysts wrote, noting Call of Duty earns approximately $1.3 billion annually in microtransaction revenue compared to Battlefield’s “modest” figures.
On Take-Two, Wells Fargo is more bullish, expecting GTA 6 to sell 50 million units in its first year, well above GTA 5’s 32 million.
“We believe GTA 6 will sell meaningfully more units in year one than GTA 5,” analysts said, driven by stronger brand awareness, less competition, and high pent-up demand.
The firm also sees upside in GTA Online, estimating it could grow to $1.5 billion in annual bookings, citing improved content updates and higher player monetisation.
Wells Fargo’s $265 TTWO price target assumes peak free cash flow in 2028 and a 25x multiple, referencing media peers like Netflix (NASDAQ:NFLX) and Disney (NYSE:DIS).