A drumline performs before the Electronic Arts EA Play event at the Hollywood Palladium on June 10, 2017 in Los Angeles, California.
Video game stocks have crushed the market this year and a top Wall Street firm predicts the sector’s strong performance will continue.
Credit Suisse shared its best interactive entertainment picks going into earnings season in a note to clients Monday. Analyst Stephen Ju shared why he is still bullish on the sector long-term:
“With the June quarter a relative new-release-lull, we do not have material changes due to product changes, but as our focus remains on the three-pronged secular thesis – 1) adoption of console full game downloads 2) adoption of console microtransactions – driving gross profit dollar expansion due to the increase in monetization 3) expansion of the addressable market with online free to play and mobile.”
Here are the top outperform-rated companies in the industry that Ju recommended and his current price targets.