Investing.com -- Electronic Arts received mixed reactions from Wall Street following its fiscal fourth-quarter earnings, with HSBC upgrading the stock to Buy while MoffettNathanson downgraded it to Neutral, citing valuation concerns.
HSBC raised its price target to $190 from $126, calling the results a “surprise return to form.”
EA reported net bookings of $1.8 billion, up 8% year over year and 15% ahead of consensus, driven by strong sales of Split Fiction and renewed engagement in its football and Sims franchises.
Adjusted operating income of $492 million beat HSBC’s estimate by 83%, and adjusted EPS of $1.58 exceeded consensus by over 50%.
“We upgrade EA to a Buy… as we turn positive on the outlook for EA FC25 following the 4Q25 recovery in monetization and engagement trends,” HSBC wrote.
The bank also cited upcoming releases, including the next Battlefield title and the 2026 World Cup, as tailwinds for growth.
In contrast, MoffettNathanson sees limited upside following the recent rally. “We think it’s time to take a more cautious stance on EA,” the firm wrote, cutting its rating to Neutral with a $163 price target.
While acknowledging EA’s fixes to the FC franchise had worked, the firm questioned the stability of the growth foundation, writing, “If small tweaks can both break it and fix it, what does that say about the foundations for growth?”
MoffettNathanson added, “EA should enjoy healthy bookings growth and margin expansion… but it’s also now ~24x our version of EPS.” Despite recognizing strong execution, the firm believes the stock is now fairly valued.