Electronic Arts (EA) still presents a compelling 12 to 18 month risk/reward profile despite lowering its 2025 bookings guidance by 7.5%, according to Oppenheimer's note Thursday.
Amid near-term challenges, the firm slashed its price target for the stock to $140 from $165 while reiterating its outperform rating after the video game publisher issued an updated outlook on Wednesday.
The firm also said the stock's recent price drop - about 13% pre-open Thursday - "captured
the majority of the downside." Shares of Electronic Arts were down nearly 18% in recent trading.
Oppenheimer said that based on the company's preliminary fiscal Q3 results, it now expects bookings of $7.08 billion and earnings per share of $6.74 for fiscal 2025, down from prior estimates of $7.67 billion bookings and $7.82 EPS.
For fiscal 2026, bookings are now seen at $7.48 billion while EPS is expected to be $7.52, compared with prior forecasts of $8.09 billion for bookings and $8.53 for EPS. Oppenheimer said its updated fiscal 2026 outlook assumes 12% full-game bookings growth and 3% live service bookings growth.
Price: 117.10, Change: -25.25, Percent Change: -17.74
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