Pacific Crest Previews E3: 'Activision Continues To Be Our Best Idea'

With this year’s E3 is just weeks away, Pacific Crest analyst Evan Wilson recently took a close look at what investors can expect from the big show and which gaming stocks are best-positioned looking forward. According to Wilson, this year’s E3 will be all about virtual reality, hardware updates and year-end holiday releases.

Nintendo Co., LTD (ADR) NTDOY has said it will not be unveiling its new NX console at E3, but Pacific Crest is eagerly anticipating announcements from Microsoft Corporation MSFT and Sony Corp (ADR) SNE regarding console hardware updates.

Facebook Inc FB’s Oculus will have the biggest virtual reality booth at this year’s event, and Sony will also likely address its own holiday virtual reality launch. Wilson sees Microsoft as the virtual reality wildcard.

Pacific Crest names Overweight-rated Activision Blizzard, Inc. ATVI as its best investment idea in the gaming space, but will be looking for answers from the company to several key questions at E3.

“Our biggest question will be around Overwatch commentary from Activision, our favorite idea in the space, after its recent successful launch and implications for estimates, its move into eSports and the future of the game,” Wilson notes.

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Pacific Crest maintains Sector Weight ratings on Electronic Arts Inc. EA, GameStop Corp. GME and Take-Two Interactive Software, Inc. TTWO.

Disclosure: the author holds no position in the stocks mentioned.