Activision Blizzard has a number of big names under its belt, and now Wall Street firm Goldman Sachs has raised its rating for Activision Blizzard shares, predicting that the profits for the company will be above expectations in both 2019 and 2020, as reported by CNBC.
"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 says. "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."
You may have noticed the sneaky 'Overwatch 2' hidden in there, which Merwin predicts will launch in 2020 and sell 20 million units in the first year, predicting that another Diablo game will be released in 2019 as well, with this selling 15 million. "When adding in the potential for non-recurring titles — Diablo, Overwatch 2, and Blizzard mobile — we believe Street estimates ... seem rather conservative, particularly in 2019 and 2020," he adds.