Analysts react to EA Investor Day via Investing.com

In notes on Wednesday, analysts offered mixed reactions to Electronic ARTS (EA) on its recent Investor Day, highlighting long-term optimism but warning of near-term challenges.

Bank of America reiterated a Buy rating with a $170 price objective, highlighting EA’s strong positioning to outperform industry growth in fiscal 2026 and 2027.

BofA highlighted the company’s ability to leverage its vast resources and technology, including generative AI, to build higher-quality content faster. The note emphasized the growth of the EA trench through it great online community that supports expansion, engagement and monetization.

While BofA acknowledged EA’s ambitions beyond gaming, such as advertising and sponsorships, they noted that it is difficult to support these opportunities until proven.

Deutsche Bank was equally upbeat, noting that EA is trending toward the top of its fiscal 2025 bookings guidance, driven by strong performance in College Football and Madden, though slightly offset by weaker-than-expected results in Apex Legends.

Deutsche Bank praised EA’s multi-year financial framework, highlighting accelerating growth and operating margin expansion through fiscal 2027. They were encouraged by EA’s $5 billion share buyback program, but remained cautious on execution on short term.

Meanwhile, analysts from Morgan Stanley focused on potential catalysts, including the upcoming beta test of EA’s new sports app and key game releases like Battlefield and The Sims. They considered successful execution in non-sports titles as a critical driver of sentiment and earnings, maintaining a balanced view of stocks.

Jefferies echoed the long-term optimism but expressed concern about when the game would play out. They acknowledged the strong outlook, but noted that investors looking for near-term reassurance may have been left wanting more, particularly in terms of bookings for fiscal 2026.