Activision Blizzard's upcoming franchise title launches will be big blockbuster sellers, according to one top Wall Street firm.
Goldman Sachs raised its rating for Activision Blizzard shares to buy from neutral, predicting the company will report profits above expectations in 2019 and 2020.
"We believe the recent sell-off in Video Game stocks has largely been due to technical factors relating to positioning around tax reform, and does not reflect any change in fundamentals for the group. We therefore see attractive entry points across our coverage, particularly for ATVI," analyst Christopher Merwin wrote in a note to clients Tuesday. "We are raising our 2019 and 2020 estimates on account of a robust multi year pipeline of games - Diablo, Overwatch 2, and a Blizzard mobile title - which we don't think Street estimates are fully taking into account."