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Electronic Arts (NASDAQ:EA) stock surged 3.43% to $122.76 as of 11:24 AM (ET) following an analyst upgrade and layoffs at Bioware.
MoffettNathanson analyst Clay Griffin upgraded EA from Neutral to Buy, maintaining a $145 price target, which implies a 22.18% upside. The move comes after concerns over Dragon Age: The Veilguard, which failed to meet sales expectations and faced gamer backlash. However, Griffin now believes the situation may not be as dire as initially feared.
Alongside the upgrade, Bioware implemented layoffs as part of a broader restructuring effort. While some employees were reassigned to other teams, the cuts followed the game's weak performance and disappointing preliminary earnings data.
Despite today's rally, EA stock remains down more than 18% year-to-date and over 13% over the past year. Investors now look ahead to EA's earnings report on Tuesday, which could be a major catalyst for further stock movement.
This article first appeared on GuruFocus.