ZNGA - Activision Blizzard remains Morgan Stanley's top gaming pick into 2021 on EPS growth story

Seeing a "path to multi-year EPS growth," Morgan Stanley names Activision Blizzard (ATVI) as its top gaming pick for 2021, reiterating an Overweight rating and adding $8 to the price target for $108.In a broader note on the industry, analyst Brian Nowak notes that the pandemic-related gaming boom "pulled forward ~4 years of video game user growth."Nowak says user retention will be the focus for game industry watchers next year.For ATVI, Nowak sees the Call of Duty franchise as a continuing growth driver. In June, Nowak had named the company his top pick coming out of the pandemic lockdowns, citing Calll of Duty: Warzone, which had released in May and topped 60M players within two months.Other price target changes: Electronic Arts (EA) (Equal-Weight) from $140 to $150, Take-Two Interactive (TTWO) (Overweight) $200 to $215, Glu Mobile (GLUU) (Equal-Weight) $9.50 to $10.25, SciPlay (SCPL) (Equal-Weight) $15 to $16, and Zynga (ZNGA) $11 to $12.ATVI shares are up 0.5% to $89.22.Previously: Zynga +3%

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Activision Blizzard remains Morgan Stanley's top gaming pick into 2021 on EPS growth story