Activision Blizzard (ATVI) PT Rasied to $42 at UBS

UBS analyst Eric Sheridan reiterated a Buy rating and bumped his price target on Activision Blizzard (NASDAQ: ATVI) to $42.00 (from $36.00) following solid Q1 results.

Sheridan commented, "In its Q1 results, ATVI exceeded expectations across the board, highlighting the strength of engagement & monetization across its portfolio and demonstrating a successful integration of King. Notably, Call of Duty continued to build upon its holiday season strength with a QoQ uptick in engagement & strong digital attach rates (despite some investors' concerns around consumer fatigue with this franchise). Against the backdrop of the Q1 beat, we continue to view ATVI's forward guidance as conservative (especially with the Overwatch launch, World of Warcraft expansion & King mobile levers ahead). In examining medium/long term stock drivers, we remain focused on the opportunity for engagement to be better monetized across ATVI's properties, for digital & mobile shifts to drive both revenues & margins, and for potential call options in eSports & media/film to deliver value to shareholders over time."

New Q2 '16 ests: non-GAAP revs, Adj. EBITDA and Adj. EPS are $1.382bn, $479mm, and $0.38 (from prior $1.380b, $460mm, and $0.36). New FY16E non-GAAP revs, Adj. EBITDA, & Adj. EPS are $6.30b, $2.22b, & $1.80 (from prior $6.25b, $2.19b & $1.78).

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 $34.91 yesterday.

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