Activision Blizzard (ATVI) Likely To Guide Down After Bungie Announcement - KeyBanc
KeyBanc analyst, Evan Wingren, reiterated his Overweight rating on shares of Activision Blizzard (NASDAQ: ATVI) but cut estimates and his price target to $64 from $80 on the announcement that the publishing and development relationship for the Destiny franchise was ending.
The analyst stated "we are reducing our FY19 and FY20 total revenue and EPS estimates on the removal of Destiny from our model and also slightly lower Blizzard expectations. Based on the Bungie relationship changes, we believe that Q4 could end up being a noisy report. For FY19, we expect consensus to move lower, and expect ATVI to guide revenue and earnings down y/y when it reports in February".
Shares of Activision Blizzard closed at $47.90 yesterday.