Baird analyst Colin Sebastian reiterated an Outperform rating and bumped his price target on Activision Blizzard (NASDAQ: ATVI) to $27.00 (from $26.00) following a strong start to 2015 driven by digital.

Sebastian commented, ". ATVI Q1 revenues of $703 million (-9% Y/Y, flat ex-FX) was well-above consensus expectations, driven by strong sell-through of Call of Duty (particularly online/DLC), while Hearthstone and catalog sales offset some of the expected Warcraft subscriber declines. Given the digital momentum (digital revenue mix at all-time high) and the positive initial reaction to Call of Duty: Black Ops 3, FY15 revenue/EPS outlook could prove conservative."

The firm raised FY 2015 EPS from $1.17 to $1.22.

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 $23.20 yesterday.