Investors are way too worried about the impact a rebranding of Electronic Arts ' FIFA video games could have on the stock, according to Bank of America.
The bank upgraded the video game maker's stock to buy from neutral and raised its price target to $150 from $145.
A decadeslong partnership between FIFA — soccer's governing body — and Electronic Arts came to an end last year, when the company announced its longtime video game franchise would be rebranded to EA Sports FC.
Additionally, Dessouky said that the company's new game video game could provide upside to consensus estimates and guidance in the near term and beyond, especially following above-trend growth in the PC and console gaming market.
"We expect the PC/Console software market to grow above trend (mid/high single digits) in CY24 and beyond," the analyst wrote.
Persons:
Omar Dessouky, Dessouky, Michael Bloom
Organizations:
Electronic Arts, FIFA, Bank of America, FIFA —, EA Sports FC, EA, SPORTS FC
Locations:
Monday's, CY24