Electronic Arts gets a downgrade from Raymond James after video game maker’s guidance cut

Raymond James is stepping to the sidelines on Electronic Arts after the video game maker cut its full-year guidance . The firm downgraded shares to market perform from outperform, though it maintained its price target of $170 per share, which points to 19.4% upside from Wednesday’s close. Electronic Arts said it sees net bookings for the full fiscal year to range between $7 billion and $7.15 billion. Previously, the company had guided for $7.5 billion to $7.8 billion. The company cited underperformance in its soccer franchise “EA Sports FC” and “Dragon Age.” The stock was last trading more than 14% lower. EA 1D mountain EA shares on Thursday “The magnitude of the shortfall is concerning,” analyst Andrew Marok wrote in a Thursday note. “Given the lower visibility into near-term trends in the company’s flagship franchise and the doubts its casts on forward execution, we move to the sidelines.” Limited clarity on forward earnings is another concern, according to the analyst. While there are opportunities for the company to cut back on costs, such as reducing marketing spend, Marok believes the near-term risk for estimates is higher. BMO Capital Markets also lowered its rating on EA shares to market perform from outperform after the company’s disappointing guidance. EA is “not in the game right now,” analyst Brian Pitz wrote in a note. “Our lack of visibility into EA’s upcoming pipeline gives us pause on the name as it remains unclear what the catalysts will be to drive growth in FY26E.” Pitz reduced his price target on shares to $145 from $160, which signals upside of just 2%. Analysts overall are split on the stock. Of the 28 who cover it, 13 rate it as a buy or strong buy while the remaining 15 have a hold rating on it, per LSEG. The average price target implies upside of about 14%.