UPDATE: Truist Securities Downgrades Activision Blizzard (ATVI) to Hold, Following Acquisition

(Updated - January 19, 2022 6:02 AM EST)

Truist Securities analyst Matthew Thornton downgraded Activision Blizzard (NASDAQ: ATVI) from Buy to Hold with a price target of $95.00 (from $74.00).

The analyst comments "1) We lower ATVI to Hold (from Buy) on the announced planned acquisition by MSFT, with our base case being the deal goes through as-is after a lengthy and thorough review by USA and Int’l antitrust regulators. We view valuation as in-line with our recent acquisition-scenario SOTP analysis ($90-$97) and we raise our PT to $95 (inline with the deal). 2) We lower our ATVI 4Q21 and out-years’ estimates (further below consensus) based on our Data Trackers (see below). 3) We view the deal read-through as positive for EA (would value at ~$188) and TTWO (would value at ≥$225 pro forma with ZNGA)."

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 $65.39 yesterday.

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