Shares of the Santa Monica, Calif.-based video game and film holding company gained 2.86% to close at $43.50 on the Nasdaq Stock Market.
In a note to clients, Goldman said it sees an "inflection" in the game-maker's earnings trajectory based on the recent releases of new content among its core game titles, including "Storm Rising" and Workshop mode for "Overwatch," "Rise of Shadows" and "The Dalaran Heist for Hearthstone."
Goldman also pointed to the upcoming release of "Diablo Immortal" and "Call of Duty Mobile" as well as the potential for to-be-announced new content from several "under-monetized" Blizzard franchises in 2020 and beyond as reasons behind its upgrade.
Shares of Activision Blizzard took a hit in early May after the company reported earnings that beat analysts' forecasts but provided lower full-year guidance.
The company is known for its popular, albeit graphic video games, in particular its "Call of Duty" series, which are first-person shooter war video games.