Activision (ATVI) - Get Report shares are rising Thursday after the company announced it will release the latest version of its popular video game series, Overwatch Legendary Edition on the Nintendo Switch on Oct. 15.
The team shooter game had more than 40 million players last year and in-game purchases alone brought in more than a billion dollars for the franchise, according to SuperData Research.
This news comes after analysts at BMO Capital upgraded the company's stock to outperform from market perform on Wednesday, while also upping its target price to $60 from $43 per share.
"We are increasing our target, owing to two main factors. First, we are increasing our 2020 earnings-per-share estimate to $3 from $2.50, based on a higher conviction level that investments in core games like Call of Duty and World of Warcraft will generate an improvement in performance," BMO analyst Gerrick Johnson said.
The upgraded outlook represents 12% upside from the stock's previous closing price. Activision shares were rising 5% to $56.19 Thursday.
"Going forward, ATVI should benefit from lapsed players coming back to games like Call of Duty or Overwatch as excitement around Fortnite cools. Also, the idea that Fortnite exposed a new generation of gamers (including many females) to the shooter genre, could be an added tailwind for ATVI," Johnson wrote.