The surging popularity of Epic Games' "Fortnite" will not significantly affect Electronic Arts' titles, according to one Wall Street firm.
J.P. Morgan initiated coverage of Electronic Arts shares with an overweight rating, predicting the company will add "battle royale" modes to its games.
"We believe investors are focused on the financial impact of PUBG/Fortnite on major publishers following the rapid rise of battle royale over the past year," analyst Alexia Quadrani wrote in a note to clients Tuesday. "We expect strong competition in the 2018 release slate with additional competition from the ramping Fortnite and battle royale style of game play. We believe EA should perform better than peers in this crowded release slate given its strong, irreplaceable sports franchises that are very consistent performers each year."