What's In Store For Electronic Arts This Earnings Season? Analyst Sees Growth In Live Services With Favorable Gross Margin
Portfolio Pulse from Nabaparna Bhattacharya
Stifel analyst Drew E. Crum has reiterated a Buy rating on Electronic Arts Inc (NASDAQ:EA), raising the price target from $152 to $155 ahead of EA's Q3 earnings report on January 30th. The analyst expects non-GAAP EPS of $2.83 on net bookings of $2.332 billion, with growth in Live Services ex-mobile and favorable gross margins, but anticipates higher operating expenses. No significant changes to FY2024 guidance are expected, and the company's stable performance, development pipeline, cash flow, and valuations support the Buy rating. EA shares rose 0.81% to $137.72.
January 18, 2024 | 7:35 pm
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Stifel analyst Drew E. Crum maintains a Buy rating on Electronic Arts, raising the price target to $155. The analyst predicts stable Q3 earnings with slight growth in Live Services and favorable gross margins, but higher operating expenses may limit profitability.
The analyst's positive outlook and raised price target suggest confidence in EA's earnings potential and financial stability, which is likely to be viewed favorably by investors. The anticipation of stable performance in Live Services and a strong development pipeline could lead to a short-term positive impact on EA's stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100