Deutsche upgrades Activision to Buy, says best risk/reward in gaming

Deutsche Bank analyst Benjamin Soff upgraded Activision Blizzard (ATVI) to Buy from Hold with a price target of $90, up from $83. The analyst believes the company’s business model offers the best risk/reward outlook across the gaming sector this year. Activision has strong momentum across its key franchises, the highest concentration of "must-have" content at a time when consumers are becoming increasingly selective, and path to "attractive" shareholder returns if even the Microsoft (MSFT) deal falls through, the analyst tells investors in a research note. Despite industry-wide headwinds to consumer spending, the firm thinks Activision can generate "healthy levels of growth this year." Deutsche Bank coupled the upgrade with a downgrade of Electronic Arts (EA) to Hold from Buy.