Electronic Arts Initiated, Workday Downgraded: Wall Street's Top Analyst Calls

In the ever-evolving world of tech and software, two prominent companies, Electronic Arts (EA) and Workday (WDAY), have recently caught the attention of Wall Street's top analysts. While EA has been initiated with a 'Buy' rating, Workday has been downgraded, reflecting the analysts' views on their future growth potential and stock price targets.



EA, the leading video game publisher, has been given a 'Buy' rating by analysts, with an average price target of $152.89, indicating a 17.83% increase from the latest price. This positive outlook can be attributed to several factors, including EA's strong financial performance, potential growth inflection in FY26, and a robust balance sheet. The company's net cash position of $876.00 million or $3.36 per share further solidifies its financial strength.



On the other hand, Workday, a cloud-based software provider, has been downgraded, with a neutral rating and a price target of $270.00, expecting WDAY to rise to within 12 months (a possible 10.28% upside). The downgrade can be attributed to the company's mixed earnings report, slower growth expectations, and valuation concerns. While Workday beat revenue expectations with sales of $1.99 billion and earnings of $1.74 per share (adjusted), the GAAP earnings were only $0.40 per share, which was a significant improvement from the $0.00 earned in the first quarter of 2023 but still lower than expected.



The recent earnings reports and financial performance of both companies have impacted analysts' views on their future growth potential and stock price targets. For EA, analysts remain optimistic about its future growth prospects, particularly from FY26, driven by various factors such as EA Sports FC recovery, new Battlefield launches, and College Football 26. In contrast, Workday's slower growth expectations and valuation concerns have led to a downgrade in its rating.

In conclusion, the recent analyst calls for EA and Workday reflect the market's sentiment towards these companies, with EA's strong financial performance and growth prospects driving a 'Buy' rating, while Workday's mixed earnings report and slower growth expectations result in a downgrade. As investors, it is essential to stay informed about these analyst views and make informed decisions based on the companies' fundamentals and long-term growth prospects.