Activision Blizzard, Inc. ATVI looks to have several things going for it from its past, with a new “World of Warcraft Classic,” and from the future with a strong move into mobile games, Nomura Instinet said Thursday in upgrading the stock.
The Analyst
Nomura Instinet’s Andrew Marok upgraded Activision Blizzard to Buy and boosted the target price from $49 to $64.
The Thesis
Marok said last month’s launch of "World of Warcraft Classic" has driven “strong, above-expectations engagement,” and "Overwatch" has added new features and a launch on Nintendo Switch.
“This provides a much more favorable backdrop heading into November’s BlizzCon, which we expect will see the reveal of a "World of Warcraft" expansion for 2020 release and at least one of "Diablo 4" (more likely) or "Overwatch 2," which are both in development,” he wrote in a note.
Marok also likes a positive initial review reception for the new "Modern Warfare" game launching next month, among other game-specific tailwinds he sees for the company.
In particular, "Call of Duty Mobile" has a significantly large potential market.
“Mobile is a clear emphasis for ATVI, and we think that further inroads here are too attractive to ignore," Marok wrote.
Price Action
Activision Blizzard's stock traded higher by 3% to $56.60 per share.
Related Links:
Analysts Like Activision Blizzard's 2019 Performance, 2020 Gameplan
Video Game Stocks Continue To Trade Lower Following Launch Of 'Apex Legends' Season 2
Photo credit: Marco Verch, via Wikimedia Commons
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.