Activision Blizzard (ATVI) PT Raised to $41 at Argus; Should Trade at a Premium

Argus reiterated a Buy rating and lifted its price target on Activision Blizzard (NASDAQ: ATVI) to $41.00 (from $34.00) following the recent KING acquisition.

The firm notes ATVI expects the acquisition to be accretive in the first year after the closing and to boost FY16 EPS by 30%. The firm is raising 2015 non-GAAP EPS estimate to $1.37 from $1.34 and their 2016 forecast to $1.54 from $1.49.

"In our view, ATVI deserves to trade at a premium to peers based on the company’s industry leadership, though the stock currently trades at a discount on some metrics," the analyst said.

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 $33.86 yesterday.

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