Activision Shares Explode On Another Stock Rating Upgrade

It was the second rating upgrade for video game company Activision Blizzard on Thursday and shares were shooting north as a result. The stock saw gains of nearly 6% before retracing.

Stephens analyst Jeff Cohen upgraded Activision stock to “overweight” from “equal-weight.”

Cohen also upped his price target from $52 to $62 and cited an improving outlook for Activision thanks to content updates and the upcoming release of “Call of Duty: Modern Warfare.”

It was earlier in the week on Wednesday that the company had received an upgrade from BMO Capital Markets to “buy” from “neutral.”

Activision recently announced that its hit game “Overwatch” will be coming to the Nintendo Switch game console on Oct. 15th.

Produced by Blizzard Entertainment, “Overwatch” already has over 40 million players worldwide. It also has a professional esports league called the Overwatch League.

Cohen said he is encouraged by Activision’s commitment to reinvigorating its core franchises.

He stated, “We believe 2019 numbers are now de-risked due to the successful launch of ‘World of Warcraft Classic’ and the announcement of a Nintendo Switch port for ‘Overwatch.'” Cohen said. “We anticipate further positive announcements at BlizzCon (in November) on the company’s upcoming game slate.”

Disclaimer: We have no position in Activision Blizzard, Inc. (NASDAQ: ATVI) and have not been compensated for this article.