Electronic Arts will benefit from the battle-royale trend popularized by Epic Games' "Fortnite," according to one Wall Street firm.
The game publisher announced Saturday it will add a battle-royale mode to its "Battlefield V" game. The title is slated for release on Oct. 19.
Piper Jaffray reiterated its overweight rating for Electronic Arts shares, predicting the new battle-royale mode will boost its game sales.
"EA confirmed that Battlefield V (shipping Oct CY18) will have a 'Fortnite-like' Battle Royale mode included in the game. This could help Battlefield regain any market share lost to Fortnite & PUBG, although we believe any share loss for Battlefield has been minimal," analyst Michael Olson said in a note to clients Monday. "Perhaps more importantly, it will provide another way for EA to drive higher engagement with the Battlefield player base."
Olson reaffirmed his $148 price target for EA shares, representing 7 percent upside to Friday's close.
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