Digital Drives Activision Blizzard (ATVI) Beat, PT to $42 - Baird

Baird analyst Colin Sebastian reiterated an Outperform rating and boosted his price target on Activision Blizzard (NASDAQ: ATVI) to $42.00 (from $38.00) following a better-than-expected start to 2015, driven by Digital.

Sebastian commented, "ATVI Q1 revenues of $908 million (+29% Y/Y, roughly flat ex-King) were well-above consensus expectations, driven by strong digital revenue growth (88% of total), including 10% organic growth of Activision's online community, 23% growth of Blizzard's community, and the partial-quarter contribution from King, which included Q/Q growth for the Candy Crush franchise. With the seasonally stronger 2H ahead, and the launch of new franchise Overwatch this month, Activision remains a top pick, with a raised $42 price target."

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 $34.91 yesterday.

You May Also Be Interested In

• Citi Upgrades United Microelectronics Corp (2303:TT) (UMC) to Buy 'with limited downside'
• Summit Insights Downgrades Silicon Labs (SLAB) to Hold, 'expect its stock to be an inline performer'
• Craig-Hallum Assumes Guardant Health (GH) at Buy, 'We think that GH is undervalued'