12:57 PM EDT, 07/31/2024 (MT Newswires) -- Electronic Arts' ( EA ) American football franchise can become "materially bigger" given the "outstanding" execution of, and reception for, the company's new college football game, Wedbush said in a note Wednesday.

The video game publisher last put out a college football game in 2013 and its latest title in the franchise, College Football 25, "has vastly exceeded our expectations," Wedbush said.

According to the firm, past titles in the franchise have typically shipped 1.5 million to 2 million units in a given launch year and 2.5 million to 3 million units lifetime, but the latest iteration, released in July, may be approaching sales of around 5 million units given the game's current active player accounts.

Wedbush said EA's fiscal non-GAAP Q2 earnings guidance of $1.85 to $2.05 per share and net bookings of $1.95 billion to $2.05 billion may have only accounted for sales to date for the game, and that there may be an upside as college football season commences this month.

Real-world events have generally benefited EA's sports franchises, such as FC 24, which experienced better-than-expected monetization due to content around the 2024 UEFA European Football Championship and the 2024 Copa America tournament, or Madden NFL 24, which was helped by the addition of college players that were drafted into the NFL.

Wedbush maintained its Outperform rating on the stock and raised its 12-month price target to $170 from $162.

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