Electronic Arts shares may have taken a beating Wednesday, but analysts at Wedbush are optimistic about the company’s future.
The video game maker reported first-quarter net bookings, a key indicator of revenues, of US$1.5 billion. That’s a first-quarter record and a 21% increase year-over-year, but it was at the lower end of the company’s guidance.
That sent shares tumbling more than 7% Wednesday to $126.31.
Meanwhile, Wedbush reiterated its Outperform rating and $155 price target in a note to clients.
“EA’s history of strong execution, its collection of IPs, and the opportunities that lie ahead justify 20x in our view,” the analysts wrote. “In addition, recent consolidation within the gaming space provides a degree of upside optionality for investors.”
Investors’ “wait will eventually pay off,” they added.
Looking forward, EA has a “multi-year pipeline” starting with the release of “culture-defining titles” such as Madden NFL 24 and EA Sports FC 24, the company said.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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