Analyst: Black Ops 4 Will Sell More Than 23 Million Copies
Call of Duty: Black Ops 4 will be available on October 12 on PC, PS4 and Xbox One. Fans have recently enjoyed the beta of its Battle Royale, called Blackout mode, and it seems that the reception has been positive not only among the but also in the market.
Market analyst Michael Olson, of Piper Jaffray, set a target price of $88 for the company’s shares, which would be 7% above current levels and approximately 10% higher than the average target fixed by Wall Street. And the truth is that the shares of Activision Blizzard (ATVI) rose 2.1% on Wednesday, to 82.24 dollars. In turn, he also pointed out that the game will reach 23.5 million copies sold.
Olson points out that the strong positive reaction to Blackout mode of the game, in its beta phase, has been responsible for this rise in shares. Investors have spent much of the year wondering how the major publishers would respond to the Fortnite phenomenon of Epic Games. And it seems that Activision Blizzard and Treyarch had the answer with Call of Duty.
“What do you get when you take the largest annual gaming franchise on Earth and combine it with the most popular new game mode? We believe the answer is earnings per share upside,” Olson says.
Now the prognosis is that Activision generates a profit in 2019 of $3 per share, which will cause their shares to be above $2.86. The forecast of Olson is far from the forecast of FactSet (which places them at $2.64).
On the other hand, Olson has also increased the estimate of sales of Black Ops 4: from 21.5 million copies sold to 23.5 million.
“Gamer and critical feedback on ‘Blackout’ have been favorable,” Olsen wrote. “We believe the Street has underestimated the potential for collective Call of Duty franchise revenue.”
We remind you that Black Ops 4 will be available on October 12 on PC, PS4 and Xbox One.