Deutsche Bank likes the video game publishers — and it just upgraded one

In this photo illustration an Activision Blizzard logo seen displayed on a smartphone.
Igor Golovniov | SOPA Images | LightRocket via Getty Images

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Video game companies are having a great year thanks to the coronavirus pandemic — and analysts are taking note.

Deutsche Bank analysts upgraded their rating on Activision Blizzard's stock to a "buy" from "hold," claiming in a note Tuesday that major publishers "have further upside" thanks to a positive earnings outlook and "stay-at-home behaviors" linked to the Covid-19 pandemic.

In Activision Blizzard's case, Deutsche said it was upgrading the stock due to a "positive sector outlook," "material upside to consensus estimates" on earnings and a "strong content pipeline over the next two years."

The analysts added that Call of Duty: Warzone — which utilizes the free-to-play battle royale genre popularized by Fortnite — "represents a fundamental positive shift for the 17 year old franchise."

They also raised their stock price targets for the sector.