Goldman Sachs Adds Activision Blizzard (ATVI) to Conviction Buy, "It Pays to Own ATVI"
Tweet Send to a Friend
Get Alerts ATVI Hot Sheet
Price: $14.23 -2.47%
Rating Summary:
13 Buy, 3 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Rating Summary:
13 Buy, 3 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Trade ATVI Now!
Goldman Sachs added Activision Blizzard (NASDAQ: ATVI) to its Conviction Buy List with a price target of $16 following results after the close.
The firm said the stock offers compelling total shareholder return story with an 9% cash return yield and increasing visibility into sustainable double digit EPS growth. Also, shares are trading at just 12.5x the firm's new $1.00 2012 EPS estimate (up from $0.97), 6% above its guidance, with several paths of upside to $1.10.
"We believe it pays to own ATVI out of its 4Q print – with an average 8% outperformance in the three months post over the last five years," the analyst said.
They raised 2012/13E EPS to $1.00/$1.12 from $0.97/$1.07 on a lower tax rate and modestly higher World of Warcraft assumptions.
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 $12.66 yesterday, with a 52 week range of $10.40-$14.40.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
The firm said the stock offers compelling total shareholder return story with an 9% cash return yield and increasing visibility into sustainable double digit EPS growth. Also, shares are trading at just 12.5x the firm's new $1.00 2012 EPS estimate (up from $0.97), 6% above its guidance, with several paths of upside to $1.10.
"We believe it pays to own ATVI out of its 4Q print – with an average 8% outperformance in the three months post over the last five years," the analyst said.
They raised 2012/13E EPS to $1.00/$1.12 from $0.97/$1.07 on a lower tax rate and modestly higher World of Warcraft assumptions.
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 $12.66 yesterday, with a 52 week range of $10.40-$14.40.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- UPDATE: BofA/Merrill Lynch Upgrades Adobe (ADBE) to Buy
- UPDATE: Macquarie Downgrades Sprint (S) to Neutral
- UPDATE: Howard Weil Upgrades LINN Energy (LINE) to Outperform
Create E-mail Alert Related Categories
Analyst EPS View, Hot Upgrades, UpgradesRelated Entities
Goldman Sachs Conviction Buy List, Goldman Sachs
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
