Activision Blizzard (ATVI) Target Cut at Piper Jaffray as Call of Duty Sales Plunge in November

December 12, 2014 8:59 AM EST
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Piper Jaffray analyst Michael Olson lowered his price target on Overweight Activision Blizzard (NASDAQ: ATVI) to $24.00 (from $27.00) while maintaining an Overweight rating following weak NPD data.

Olson commented, "November NPD was released last night and Activision NPD sales fell 22% y/y in the month, with Call of Duty down 27%. This is disappointing data following first week Call of Duty: Advanced Warfare sales showing a y/y increase. NPD data does not include digital copies or international sales, which, if included, would lessen the y/y decline, but we believe this data suggests potential for Q4 revenue upside is now very low. Strength in the Blizzard side of the business (WoW & HearthStone) should allow for an in-line Q4, but we are slightly lowering our estimates to now be in-line with company guidance. The company's outlook anticipated a y/y decline in Call of Duty, so we do not believe these reduced numbers are at risk."

The firm cut FY 2014 EPS from $1.36 to $1.35.

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 $20.34 yesterday.

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Piper Jaffray, Michael Olson