Wedbush Reiterates Outperform on Activision Blizzard (ATVI) Following Announced King Digital (KING) Acquisition

Wedbush reiterated an Outperform rating on Activision Blizzard (NASDAQ: ATVI), and raised the price target to $47.00 (from $37.00), following the announced acquisition of King Digital Entertainment (NYSE: KING). Analyst Michael Pachter doesn't expect the acquisition to be completed by year-end, and is maintaining most recently published estimates for December 2015 for each company, and those estimates should be relied upon by investors.

Pachter commented, "Last Monday night, Activision Blizzard announced an agreement to acquire King Digital Entertainment (ticker: KING) for an equity value of roughly $5.9 billion and an enterprise value of roughly $5.0 billion. The $18.00 per share purchase price represents a roughly 20% premium to King’s closing price on October 30, 2015. In addition, Activision Blizzard pre-announced better-than-expected Q3:15 (ending September) results at that time."

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 $35.00 yesterday.

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