Activision Blizzard (ATVI) Fundamentals Might Take Back Seat to Potential Buy-In or Dividend
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Price: $15.61 +0.45%
Rating Summary:
13 Buy, 3 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
13 Buy, 3 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade ATVI Now!
Analysts at MKM think Activision Blizzard, Inc. (NASDAQ: ATVI) fundamentals will prove less important near-term given 'special situation opportunities' in the stock. These events include a possible leveraged buy-in of Vivendi's 60 percent interest in the ATVI or a more meaningful dividend.
According to analyst Eric Handler, Activision Blizzard has been hording cash since news broke that Vivendi is exploring strategic options for its non-core assets. In his view, a leveraged buy-in of Vivendi's position in Activision would be the preferred use of cash.
"If Vivendi decides to hold onto its Activision stake, we believe a higher dividend might make more sense, as it would avoid a situation in which Vivendi's ownership creeps higher. We believe a 3%-4% dividend yield, which would equate to an annual dividend of $0.35-$0.47 per share (up from the current $0.18 dividend), would catch the attention of yield investors," said the analyst.
MKM Partners has a Buy rating Activision Blizzard with a price target of $17.00.
For an analyst ratings summary and ratings history on Activision Blizzard (NASDAQ: ATVI) click here. For more ratings news on Activision Blizzard click here.
Shares of Activision Blizzard closed at $11.85 yesterday, with a 52 week range of $10.45-$13.01.
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According to analyst Eric Handler, Activision Blizzard has been hording cash since news broke that Vivendi is exploring strategic options for its non-core assets. In his view, a leveraged buy-in of Vivendi's position in Activision would be the preferred use of cash.
"If Vivendi decides to hold onto its Activision stake, we believe a higher dividend might make more sense, as it would avoid a situation in which Vivendi's ownership creeps higher. We believe a 3%-4% dividend yield, which would equate to an annual dividend of $0.35-$0.47 per share (up from the current $0.18 dividend), would catch the attention of yield investors," said the analyst.
MKM Partners has a Buy rating Activision Blizzard with a price target of $17.00.
For an analyst ratings summary and ratings history on Activision Blizzard (NASDAQ: ATVI) click here. For more ratings news on Activision Blizzard click here.
Shares of Activision Blizzard closed at $11.85 yesterday, with a 52 week range of $10.45-$13.01.
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