Argus reiterated a Buy rating and lifted its price target on Activision Blizzard (NASDAQ: ATVI) to $41.00 (from $34.00) following the recent KING acquisition.

The firm notes ATVI expects the acquisition to be accretive in the first year after the closing and to boost FY16 EPS by 30%. The firm is raising 2015 non-GAAP EPS estimate to $1.37 from $1.34 and their 2016 forecast to $1.54 from $1.49.

"In our view, ATVI deserves to trade at a premium to peers based on the company’s industry leadership, though the stock currently trades at a discount on some metrics," the analyst said.

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Shares of Activision Blizzard closed at $33.86 yesterday.