Activision Blizzard Price Target Raised to $22.00 at Brean Capital (ATVI)
Equities research analysts at Brean Capital raised their price objective on shares of Activision Blizzard (NASDAQ:ATVI) from $20.00 to $22.00 in a research note issued to investors on Friday, StockRatingsNetwork reports. The firm currently has a “buy” rating on the stock. Brean Capital’s price objective points to a potential upside of 12.02% from the company’s current price.
The analysts wrote, “Activision beat expectations with a 12% decline in revenue to $2.27 billion and a nearly flat non-GAAP EPS of $0.79. Results are a tribute to Activision’s strong execution in a difficult macro environment. Consumers snatched up over 7 million next generation consoles in 2013, stealing wallet from prior gen software. Moreover, two of Activision’s biggest franchises, Call of Duty and Skylanders, took on reinvigorated challenges from EA’s (EA, Buy, $26.46) Battlefield 4 and Disney’s (DIS, Not Rated, $75.56) Infinity. Activision faces a tough 1H14 comp, with sell through of CoD and associated DLC expected to be down, and high inventory levels of Skylanders at channel partners expected to quash reorders. We look for a mini-rebound in March with the release of an expansion of Diablo III, and then a return to growth in the Fall with the launch of Destiny and a WoW expansion. In the interim, results should be smoothed over by free-to-play titles: HearthStone: Heroes of Warcraft, Heroes of the Storm and Call of Duty: China. Given our positive outlook for the industry in 2014, Activision’s strong release slate, and proven execution, we are raising our target price to $22 from $20, and reiterate our Buy rating.”
A number of other firms have also recently commented on ATVI. Analysts at CRT Capital initiated coverage on shares of Activision Blizzard in a research note to investors on Friday, January 17th. They set a “buy” rating and a $23.00 price target on the stock. Separately, analysts at UBS AG raised their price target on shares of Activision Blizzard from $21.00 to $23.00 in a research note to investors on Monday, January 13th. They now have a “buy” rating on the stock. Finally, analysts at Stifel Nicolaus reiterated a “buy” rating on shares of Activision Blizzard in a research note to investors on Friday, January 10th. They now have a $22.00 price target on the stock, up previously from $21.00. One investment analyst has rated the stock with a hold rating and fifteen have issued a buy rating to the company. Activision Blizzard has a consensus rating of “Buy” and an average target price of $20.53.
Shares of Activision Blizzard (NASDAQ:ATVI) traded up 14.39% during mid-day trading on Friday, hitting $19.64. 29,882,120 shares of the company’s stock traded hands. Activision Blizzard has a one year low of $12.90 and a one year high of $18.55. The stock has a 50-day moving average of $17.50 and a 200-day moving average of $17.15. The company has a market cap of $13.658 billion and a price-to-earnings ratio of 16.51. Activision Blizzard also was the recipient of a significant drop in short interest during the month of January. As of January 15th, there was short interest totalling 12,564,332 shares, a drop of 11.9% from the December 31st total of 14,053,944 shares. Based on an average trading volume of 6,027,172 shares, the days-to-cover ratio is presently 2.1 days. Currently, 2.9% of the company’s shares are sold short.
Activision Blizzard (NASDAQ:ATVI) last issued its quarterly earnings data on Thursday, February 6th. The company reported $0.79 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.73 by $0.06. The company had revenue of $2.27 billion for the quarter, compared to the consensus estimate of $2.22 billion. During the same quarter in the prior year, the company posted $0.78 earnings per share. The company’s quarterly revenue was down 12.4% on a year-over-year basis. On average, analysts predict that Activision Blizzard will post $1.27 earnings per share for the current fiscal year.
The company also recently announced a annual dividend, which is scheduled for Wednesday, May 14th. Stockholders of record on Wednesday, March 19th will be paid a dividend of 0.20 per share. This represents a dividend yield of 1.02%. The ex-dividend date is Monday, March 17th. This is a boost from Activision Blizzard’s previous annual dividend of $0.19.
Activision, Inc (NASDAQ:ATVI) is a worldwide publisher of online, personal computer (PC), console, handheld, and mobile interactive entertainment products.
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