Goldman Sachs Starts Activision Blizzard (ATVI) at Buy

Goldman Sachs resumes coverage on Activision Blizzard (NASDAQ: ATVI) with a Buy rating and $13 price target.

The firm notes, "Activision (Buy) offers an 11% cash return yield and growing, peer high margins (30%) from the highest digital mix in games (30%+). We see 8% and 20% 2011-13 revenue and EPS CAGRs from: (1) the high-def growth curve expanding the addressable market of its top game by 20-30%, (2) higher ARPU for its biggest brand on digital extensions, and (3) consistent 5%+ annual equity shrink with margin expansion driving 20%+ EPS growth."

For more ratings news on Activision Blizzard click here and for the rating history of Activision Blizzard click here.

Shares of Activision Blizzard closed at $11.21 yesterday.

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