Goldman Sachs Resumes Coverage on Activision Blizzard at Buy (ATVI)

Goldman Sachs is out with its report today on Activision Blizzard ATVI, resuming Coverage on ATVI at Buy. In a note to clients, Goldman Sachs writes, "We resume coverage of ATVI shares with a Buy rating and 17% upside to our $13 price target. Activision offers 8% and 20% 2011-2013E revenue and EPS CAGRs, a 15-year history of 17% annualized total returns with an 11% cash return yield, and growing, peer-high margins of around 30%. The unwinding of low margin Guitar Hero and concerns about the durability of its largest games contributed to two years of share price under performance despite improving returns. We think ATVI can successfully expand Call of Duty v Asia and via premium multiplayer and micropayments and its Blizzard MMOs via the eventual Titan release." At the time of posting, shares of ATVI were trading pre-market at $11.32, up 0.98% from Thursday's close.