Activision Blizzard shares were falling on Wednesday, following a rating downgrade from Bernstein.
Analysts at Bernstein downgraded the video game company to underperform from market perform. According to these analysts, investors are "paying too much for hope" surrounding recently released mobile versions of Activision’s shooting games.
Bernstein analyst Todd Juenger indicated that he/his team cannot match the current stock price with the company's risk-adjusted fundamentals.
Jeunger pointed towards sales forecasts on recently released mobile versions of Activision Blizzard's "Call of Duty" and "World of Warcraft Classic" games, and said that the company is too reliant on shooting games that in his opinion do not carry enough "franchise sustainability" over the longer term. The analyst is more optimistic on sports games.
However, Juenger did increase his one-year price target on the stock to $43 from $41 (which is still the lowest among Wall Street analysts who cover the Activision).