Keep an eye on oversold shares of Electronic Arts (EA).

After finding strong double-bottom support, the stock is just starting to push higher. From its current price of $124.59, we’d like to see it eventually refill its bearish gap at $136.  Helping, Bank of America analysts just upgraded the stock to a buy rating with a $150 price target.

The firm points to a few reasons for the upgrade. 

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As noted by Investing.com, “The relative valuation of EA is currently near a five-year low, which could indicate that the stock is undervalued compared to its historical performance; Preliminary data from the EA Sports FC 24 launch suggests potential upside to Street estimates and guidance, which could be a positive signal for the company’s performance; and Estimates for FY25 and beyond could see a series of upward revisions as EA benefits from above-trend growth in the PC and console game market in calendar year 2024 and beyond.”

Sincerely,

Ian Cooper