Is Electronic Arts stock a buy? (September, 2024)

Following the company’s investor day, Roth MKM analyst Eric Handler remains on the fence when it comes to Electronic Arts (Electronic Arts Stock Quote, Chart, News, Analysts, Financials NASDAQ:EA).

On September 17, EA hosted its annual investor day.

“We are excited to unveil an in-depth look inside the growing scale and scope of our IP portfolio, as we accelerate engagement and social connection in and around our biggest franchises,” CEO Andrew Wilson said. “We are also introducing new experiences and leveraging innovative technology to serve our global communities and attract new audiences, as we continue to transform our business and shape the future of entertainment.”

The analyst summarized the event, citing his primary concern.

“EA’s investor day laid out a new road map for growth largely built around six key franchises and the potential to further scale these games through expanded community development, new play modes, new experiences, and greater cost efficiencies,” he wrote. “These initiatives are expected to allow EA to significantly outpace the industry’s projected 4% growth through FY27. We believe in EA’s execution ability with sports but need greater confidence in other parts of its IP portfolio.”

In a research update to clients September 18, Handler maintained his “Neutral” rating and price target of $154.00 on EA.

The analyst thinks the company will post EPS of $7.70 on revenue of $7.67-billion in fiscal 2025. He expects those numbers will improve to EPS of $8.58 on a topline of $8.04-billion in fiscal 2026.