Activision stock gains after Goldman upgrades to buy, adds to conviction list
Activision Blizzard Inc. shares are up 5% in Tuesday morning trading after Goldman Sachs analyst Michael Ng upgraded the stock to buy from neutral and elevated it to the firm's conviction list. The company "is on the cusp of an earnings inflection," he wrote, and an "engagement inflection" as well. "Specifically, 'Overwatch' engagement is likely to improve following the introduction of Storm Rising (PvE), Workshop mode, and Havana," he wrote. "'Hearthstone' likely will benefit from Rise of Shadows (expansion) and The Dalaran Heist (solo story mode), while 'World of Warcraft' should benefit from Classic and Rise of Azshara." Ng argued that forthcoming Blizzard title announcements create the potential for earnings upside. Shares have fallen 5% so far this year, as the S&P 500 has gained 13%.
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