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Credit Suisse Just Adjusted Its Financial Models For EA, Activision Blizzard & Take-Two

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Credit Suisse commented on online video games this week, and made adjustments to its financial models ahead of the companies' quarterly financial results.

Analysts, led by Stephen Hu, adjusted numbers for Activision Blizzard, Inc. (NASDAQ: ATVI) by increasing subscriber assumptions for World of Warcraft, the release push-back for Starcraft, 10-12 percent digital unit volume sales for Call of Duty and Destiny and the addition of other titles.

“Our investment thesis for ATVI shares, which is predicated on its ability to produce high quality content, the consistency of management execution, and the relatively strong positioning throughout the long-term industry transition from a consumer packaged goods business to an online environment remains unchanged,” according to Ju.

Related Link: Brean Capital: EA Is Well Positioned In 2015, But The Stock Could 'Pause'

The firm maintained an Outperform rating $28 price target. Activision Blizzard will report earnings on February 5.

For Electronic Arts Inc. (NASDAQ: EA), the analysts included the release FIFA Online 3 for China and modeled a more favorable product mix through 2017.

Ju commented that the “main item of focus for the December quarter report will be the 4QFY15 quarter guidance,” and the analysts expected “little in the way of volatility in EA shares at this time as the more important FY16 guidance...will not arrive for another quarter.”

The firm maintained an Outperform rating raised its price target from $45 to $55. Electronic Arts will report earnings on January 27.

Take-Two Interactive Software, Inc. (NASDAQ: TTWO) had a unit volume forecast for FY 2017 added to its financial model and adjusted estimates for Borderlands and Red Dead.

“Investors will primarily be focused on 4Q15 guidance as this will serve as an indicator for expectations around new franchise Evolve (which took home best in show at E3 2014),” according to Ju.

The firm maintained a Neutral rating on the stock and raised its price target from $24 to $31. Take-Two Interactive Software will report earnings on February 3.

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