BMO Capital analyst Gerrick Johnson downgraded Activision Blizzard (ATVI) to Market Perform from Outperform with a price target of $80, down from $95.

The analyst recommends taking profits after the stock's "extraordinary run." Johnson still believes in Activision's long-term strategy and "could be constructive on the shares at a lower valuation."

While not expensive, we see the current valuation is fair based on 2021 estimates, Johnson tells investors in a research note. Video game engagement will be higher after the pandemic is over than before it began, but estimates and Activision's outlook already reflect this, says the analyst.