Electronic Arts: Stifel lowers PT on concerns over flagship titles

Investing.com– Stifel analysts have lowered their price target for Electronic Arts Inc (NASDAQ:), citing reduced expectations for the performance of flagship titles like EA Sports FC 25 and Battlefield, and limited upside potential despite steady long-term prospects.

The firm maintained its “Hold” rating and lowered its price target to $159 from $167.

While the stock has declined 8% since mid-December, underperforming the broader market, there are concerns over the next Battlefield release, a softer launch for Dragon Age: The Veilguard, and challenges with EA Sports FC 25 compared to its predecessor, Stifel analysts said in a note.

“We see modest risks to Street expectations (for EA’s upcoming third-quarter results) based on weaker performance for EA Sports FC 25 vs. last year’s edition,” the analysts wrote, adding that these estimates now forecast net bookings of $2.456 billion, slightly below consensus.

The analysts also pointed to mixed results across EA’s game portfolio. While College Football 25 achieved a historic milestone as the best-selling sports title in U.S. history, other franchises, such as Madden NFL and Apex Legends, have shown year-over-year declines in key metrics, they said.

Stifel’s revised FY2025 and FY2026 earnings estimates reflect slight adjustments, with EPS now forecast at $7.62 and $8.39, respectively, compared to $7.64 and $8.40 previously. Revenue estimates were also reduced marginally.

Despite these near-term headwinds, Stifel remains cautiously optimistic about EA’s longer-term trajectory, citing strong fundamentals and a diversified portfolio. However, with no clear catalysts in sight for 2025, the firm recommends investors hold their positions while awaiting clarity on upcoming releases.