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EA’s stock target raised as Apex Legends tops 25 million players

EA announced today that the just-released Apex Legends has already topped 25 million players.

The free-to-play shooter from Respawn is barely a week old and already outpacing Fortnite, which took 40 days to reach 20 million players. This is leading analysts like Baird’s Colin Sebastian to raise their price target of EA, which has been a laggard for most of the past year.

Sebastian estimates that Apex Legends could generate $500 million in revenue if it maintains a user base of at least 25 million active players. He bases his estimate on similar free-to-play titles, which “are generating well in excess of $20 per user annually.”

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In a note released to the press early Monday evening, Sebastian raised EA’s stock price target from $90 to $106 for fiscal year 2020. As recently as December 24, EA’s stock was trading at $74. Today, its stock price is at just over $97 per share.

Editor’s note: In the interest of full disclosure, the author of this article does NOT own EA’s stock or any video game-related stocks. You should speak with a financial adviser before investing.

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