On Wednesday, Stifel updated its outlook on shares of Electronic Arts (NASDAQ:), increasing the price target to $167 from $165, while reaffirming a Buy rating on the stock. The adjustment followed Electronic Arts’ announcement of first-quarter financial results for fiscal year 2025, which surpassed expectations. The company’s success was attributed to the robust performance of its key sports franchises, including Madden NFL and EAS FC.
Electronic Arts’ financial results for the first quarter were released after market hours on Tuesday, showcasing a promising start to the fiscal year. The company’s performance was particularly bolstered by successful sports titles, which have been a consistent growth driver. Despite the positive results, the company’s guidance for fiscal year 2025 remained the same, aligning with Stifel’s predictions.
The management team at Electronic Arts expressed confidence in achieving record results for the second quarter of the fiscal year. This optimistic forecast is largely based on the successful launch of College Football 25, a factor that has been incorporated into Stifel’s revised financial model and estimates for the company.
In summary, Stifel’s analyst highlighted the strong opening to fiscal year 2025 and the potential for Electronic Arts to maintain its momentum. The unchanged guidance for the full year, coupled with the anticipated record performance in the upcoming quarter, underpins the firm’s decision to maintain a Buy rating on Electronic Arts shares.
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