- With industry trade show E3 ramping up for an official start tomorrow, Baird is bullish on videogame makers that it says aren't short on growth drivers.
- It's a "must own" sector, analyst Colin Sebastian says, "on track to become the largest segment of media and entertainment globally" as it runs toward $145B in revenue by 2020.
- "We expect multiple catalysts to drive continued growth and profitability gains for top 'pure-play' publishers including Activision (NASDAQ:ATVI), EA (NASDAQ:EA), Ubisoft (OTCPK:UBSFY) and Take-Two (NASDAQ:TTWO)," he writes.
- He's reiterating Outperform ratings on ATVI, EA and TTWO. Key catalysts ahead: digital downloads, microtransactions, esports, mobile, and streaming/cloud services -- along with a new generation of consoles expected in 2020 or 2021.
- In today's market action: ATVI +1%; EA +0.9%; TTWO -0.1%; OTCPK:UBSFY +1.6%; SNE +1.1%; MSFT -0.6%; OTCPK:NTDOY +0.2%; GAMR -0.1%.
- Now read: Microsoft: Netflix (NASDAQ:NFLX) Of Gaming Might Not Equate To Stock Upside
Original article