With the recent loot crate debacle affecting sales of Star Wars Battlefront 2 and EA's stock value, investors have been a bit warier when it comes to gaming investments. One industry analyst believes that Activision Blizzard will be one of the game publishers that comes out of it all in the green.
Goldman Sachs has raised its rating for Activision Blizzard shares from neutral to buy, predicting that the company will see plenty of profits in the coming years. Christopher Merwin, a Goldman Sachs analyst attributes their alleged jump in profits to upcoming titles.
"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."
Merwin is simply throwing out the probability of those titles being in development. Neither Blizzard (proper) or Activision Blizzard have confirmed that 'Overwatch 2' is in development, but there have been hints at a new Diablo installment. As far as an Overwatch sequel goes, there might be something in the Overwatch universe. At the moment, Overwatch is fairly profitable and has recently seen a birth of an eSports league based around it.
[CNBC]
