Electronic Arts Surpasses Analyst Price Target: What’s Next?
Recently, shares of Electronic Arts, Inc. (Symbol: EA) traded above the average analyst target price of $145.84, reaching $146.19 per share. When a stock meets or exceeds an analyst’s target, the analyst typically has two main options: downgrade the stock based on valuation or adjust their target price upward. Additionally, analysts may consider the underlying business developments that could be influencing the stock’s performance, potentially warranting an increase in the target price.
Within the Zacks coverage universe, 25 different analyst targets contribute to the average for Electronic Arts. However, it’s crucial to note that this average is simply a mathematical calculation. Some analysts maintain lower target prices, with one setting a forecast of $126.00. Meanwhile, another analyst has set an ambitious target as high as $179.00. Notably, the standard deviation among these targets is $14.223.
The purpose of analyzing the average EA price target lies in leveraging a collective decision-making process, effectively utilizing the insights of multiple analysts rather than relying on just one expert’s opinion. With EA’s stock now trading above the average target price of $145.84 per share, investors face a critical decision: Is $145.84 a stepping stone toward an even higher target, or has the stock reached a valuation that suggests it may be prudent to consider securing some profits? Below, we provide a summary table illustrating the current analyst outlook for Electronic Arts, Inc.
| Recent EA Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 10 | 10 | 10 | 10 |
| Buy ratings: | 1 | 1 | 1 | 1 |
| Hold ratings: | 15 | 15 | 15 | 15 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 2.19 | 2.19 | 2.19 | 2.19 |
The average rating indicated in the above table ranges from 1 to 5, with 1 being a Strong Buy and 5 a Strong Sell. This analysis utilizes data provided by Zacks Investment Research via Quandl.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
