UPDATE: Bank of America Reiterates Neutral Rating, Raises PT on Activision Blizzard on Optimistic Transaction Outlook

In a report published Friday, Bank of America reiterated its Neutral rating on Activision Blizzard ATVI, and slightly raised its price target from $14.00 to $14.50. Bank of America noted, “Activision is an Interactive entertainment industry leader with a strong title portfolio and the leading position in the Online/MMO space post Vivendi merger. Growth drivers are new PC titles from Blizzard, new online services for World of Warcraft and Starcraft franchises, and digital revenues from Call of Duty. Given industry challenges and Activision's slowing growth profile, offset by margin improvement opportunities, the stock should trade at a 10-15x forward P/E, in our view.” Activision Blizzard closed on Thursday at $12.06.