Activision Blizzard (ATVI) PT Lowered to $86 at Benchmark

Benchmark analyst Mike Hickey lowered the price target on Activision Blizzard (NASDAQ: ATVI) to $86.00 (from $115.00) while maintaining a Buy rating amid the intensified scrutiny of Bobby Kotick's leadership and on-going investigations on alleged sexual misconduct.

The analyst commented, "We are reducing our PT to $86 from $115, based on intensified scrutiny of Bobby Kotick's leadership and on-going investigations on alleged sexual misconduct issues within Blizzard and now other studios within ATVI including Sledgehammer Games and Treyarch, as reported yesterday by the WSJ. We are concerned over the potential implications of a prolonged executive leadership struggle over intensifying allegations and related distractions, which could further challenge employee retention, creative culture, productivity, and product quality. We are also concerned that elevated media attention on allegations could begin to erode players desire to play ATVI games. We continue to believe that ATVI offers a compelling fundamental growth opportunity and relative valuation, but we believe we should take a more conservative view of growth and target multiple given risks.."

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