Oppenheimer Starts Activision Blizzard (ATVI) at Outperform

October 13, 2016 4:05 PM EDT
Get Alerts ATVI Hot Sheet
Price: $43.05 -1.53%

Rating Summary:
    20 Buy, 3 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 49 | New: 20
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Oppenheimer initiates coverage on Activision Blizzard (NASDAQ: ATVI) with a Outperform rating and a price target of $53.00.

Analyst Andrew Uerkwitz commented, "We believe Activision Blizzard will outperform its peers in the video game industry's secular shift to digital distribution and new monetization models. ATVI's strong brand and well-recognized game franchises will allow the company to foster deeper engagement with players and reduce its earnings volatility between product cycles. Also, we believe there is significant upside from its emerging eSports, media content and mobile advertising initiatives, the benefit of which will not be material until after 2017. Our Outperform rating is based on high confidence in earnings growth and margin expansion outlook and high optionality from its emerging business opportunities. We find the stock attractively priced at 18x 2018E consensus EPS. Our PT of $53 is based on 22x our 2018E non-GAAP EPS of $2.43."

For an analyst ratings summary and ratings history on Activision Blizzard click here. For more ratings news on Activision Blizzard click here.

Shares of Activision Blizzard closed at $43.33 yesterday.

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