Tech

Here are 3 top gaming stock ideas from Piper — including Take-Two

Source: Take-Two Interactive Software

Major videogame publisher stocks will thrive as consumers shift to downloading games more, according to Piper Jaffray.

The firm reiterated its overweight ratings for Take-Two, Electronic Arts and Activision Blizzard shares, predicting rising profitability over the next four years for the companies.

“We believe it is a certainty that video games [sales] will be ~100% digital in the coming years [versus the 70 percent to 75 percent currently], and while exact timing is hard to pinpoint, we think 2022 is a realistic expectation,” analyst Michael Olson said in a note to clients Monday. “In an all digital video game world, publisher margins would be dramatically higher."