UPDATE: Citi Initiates Activision Blizzard at Buy

Citi is out with its report today on Activision Blizzard ATVI, initiating ATVI at Buy. In its report, Citi writes, "We believe investors are overlooking ATVI's substantial Online Gaming assets, which makes valuation very compelling to us. Activision derives a significant portion of its total revenue (40%) from Online Gaming, yet the stock trades at 10x 2013 Non-GAAP EPS." Citi has a $16 PT on ATVI. Shares of ATVI closed Friday at $11.33, down 2.07% from Thursday's close.