Why This Activision Blizzard Analyst Is Turning Bullish Ahead Of Microsoft Deal

Zinger Key Points
  • There's 'positive momentum from Call of Duty,' this analyst says.
  • The video game company is among the few names that are likely to be less impacted by recession.

Even as the world shifts its focus to FIFA, Activision Blizzard Inc. ATVI remains a leader in rapidly evolving esports market.

The Santa Monica, California-based company has witnessed improving product momentum and is among the few names that are likely to be less impacted by recession, according to Baird Equity Research analyst Colin Sebastian, who upgraded the stock's rating from Neutral to Outperform.

Sebastian is keeping the price target unchanged at $95.

Check out other analyst stock ratings.

The "standalone" valuation of Activision Blizzard is revised to $78, although its acquisition by Microsoft Corp MSFT is likely to close next year at a deal price of $95 per share, Sebastian explained in an analyst note.

“We note positive momentum from Call of Duty: MW2 combined with other key product launches (Warzone 2.0, WoW expansion, Diablo IV, next COD) should provide improving visibility for out-year earnings targets, and possibly offer some recession-resiliency,” Sebastian added.

ATVI Price Action: Shares of Activision Blizzard had risen by 0.97% to $75.52 at the time of publication Tuesday.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorEntertainmentM&ANewsUpgradesTop StoriesAnalyst RatingsTechGeneralBaird Equity ResearchColin Sebastian
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!