Electronic Arts price target lowered to $140 from $165 at Oppenheimer

Oppenheimer lowered the firm’s price target on electronic art (EA) to $140 from $165 and maintains an Outperform rating on the stock. The firm notes that on January 22, EA released preliminary Q3 bookings and lowered bookings guidance for FY25 by 7.5%, the worst decline since FY19. Management attributes the weaker outlook primarily to Global Football, which is expected to show mid-single-digit declines in FY25. Dragon Age sales also disappointed, falling 50% below management’s expectations. Oppenheimer also points out that the drastic cut to Global Football’s near-term outlook does not provide the hard reset that investors were looking for. Compared to a Battlefield delay, declines in Global Football are more alarming, it is claimed. But based on a pre-market price of around $122, the firm believes the 12- to 18-month risk/reward profile still looks favorable.