Activision Is Still Rewarding Investors, And More Call Of Duty Is Coming

Following the company’s recent Q2 earnings beat, shares of video game giant Activision Blizzard, Inc. ATVI were soaring more than 13 percent on Wednesday. But with the stock now up more than 44 percent so far this year, should shareholders be taking profits?

Pacific Crest’s Take

Analyst Evan Wilson maintains his bullish outlook for Activision Blizzard. Even though the stock has been on a tear so far this year, he sees more room for upside from current levels.

“2015 continues to have several potential catalysts, including the return of old IP, new digital games (which seem to be nicely offsetting the decline in WoW) and a healthier industry for annualized titles,” Wilson explained.

Pacific Crest maintains its Overweight rating and $30 target for the stock.

Related Link: Activision Had A 'Huge, Huge Revenue Beat,' But Is A Correction Coming?

Piper Jaffray’s Take

Analyst Michael Olson also sees more good things on the horizon for Activision Blizzard. He points out that the company’s 2016 game pipeline looks very strong and that the company’s management has a track record of conservative guidance.

Following the Q2 earnings beat, Piper Jaffray maintained its Overweight rating, but raised its price target for Activision Blizzard from $27 to $30 because the firm believes the company’s recent performance deserves a premium multiple over rival Electronic Arts Inc. EA.

“Our CY16 overall estimate assumes revenue growth of 7%, based on our expectation for a strong pipeline, including new IP Overwatch, a new version of Destiny and expansions of WoW and Diablo,” Olson added.

Call Of Duty Preview

Just this week, Activision released a new batch of screenshots for its next installment of the Call of Duty series: "Black Ops III." The game is scheduled for release on November 6, but Activision will be running a public beta on the game starting on August 19 for PS4 owners and August 26 for PC and Xbox One players.