EA Stock Retained Outperform Rating by Baird Amidst Growth in Sports Gaming

Overview

In a recent research note, Baird analyst Colin Sebastian reiterated his Outperform rating on Electronic Arts (EA) stock, citing the company's strong performance in the sports video game segment.

EA shares have been on an upward trajectory in recent months, buoyed by the success of titles such as FIFA 23 and Madden NFL 23.

Growth in Sports Gaming

According to Baird's analysis, the sports gaming market is experiencing significant growth, driven by factors such as the increasing popularity of esports and the expansion of gaming platforms.

EA has been a major beneficiary of this growth, with its sports titles consistently ranking among the best-selling games in the industry.

Expansion into Mobile and Subscription Services

In addition to its core console business, EA is also expanding into mobile gaming and subscription services.

The company's mobile games, such as Apex Legends Mobile, have been well-received, and its EA Play subscription service has gained a significant number of subscribers.

Analyst Commentary

Sebastian believes that EA is well-positioned to continue its strong performance in the years to come.

He noted that the company has a "deep pipeline" of new releases, including highly anticipated titles such as Star Wars Jedi: Survivor and EA Sports FC.

Sebastian also praised EA's efforts to diversify its revenue streams through mobile gaming and subscription services.

Investment Implications

Based on his analysis, Sebastian maintained his Outperform rating on EA stock.

He believes that the company's strong position in the sports gaming market, combined with its expansion into new areas, makes it an attractive investment opportunity.