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Activision (ATVI): Low Expectations and Slight Upside Thursday - Piper Jaffray

May 3, 2016 8:48 AM EDT
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Price: $94.42 --0%

Rating Summary:
    22 Buy, 22 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 20 | Down: 14 | New: 22
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PiperJaffray analyst, Michael Olson, sees the potential for slight upside to revenue and EPS at Activision Blizzard (NASDAQ: ATVI) based on partial inclusion of King Digital revenue (acquisition closed 2/23) and a decline in revenue less than the decline in NPD sales for the quarter. He is modeling for a 13% y/y revenue decline (Activision ex King) vs. an 11% decline for NPD revenue.

Activision's only significant catalyst in 1H'16 from a title perspective is Overwatch, launching on 5/24. That said, it could be a significant title; the analysis of YouTube trailer views suggests interest levels similar to other recent new IP hits, including The Division and Destiny.

Activision is scheduled to report Q1 results on Thursday, 5/5.

The firm maintained an Overweight rating and $39 price target on the stock.

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 $34.58 yesterday.



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