Cautious Hold Rating on Electronic Arts Amid Mixed Performance and Competitive Challenges

J.P. Morgan analyst Cory Carpenter maintained a Hold rating on Electronic Arts (EA – Research Report) yesterday and set a price target of $160.00.

Cory Carpenter has given his Hold rating due to a combination of factors impacting Electronic Arts’ outlook. Despite EA’s recent financial performance exceeding expectations, with bookings and guidance for FY26 surpassing consensus estimates, there are still uncertainties that warrant a cautious stance. The company’s recent success with titles like Split Fiction and improvements in player monetization for FC are positive signs, but the inconsistent execution in non-sports franchises and the competitive landscape pose challenges.
Carpenter also notes that while the delay of GTA VI presents an opportunity for Battlefield’s release in FY26, there remains a need for more consistent execution and visibility regarding Battlefield’s performance. Additionally, while EA’s sports franchises maintain strong competitive advantages, the volatility in FC and the headwinds from catalog and Apex Legends contribute to the Hold rating. The analyst raises the price target to reflect improved trends but remains neutral as they await more consistent performance across EA’s portfolio.

In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $148.00 price target.

EA’s price has also changed slightly for the past six months – from $157.960 to $154.540, which is a -2.17% drop .