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UPDATE: Bank of America Upgrades Activision Blizzard Ahead of Big Games Lineup

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In a report published Thursday, Bank of America analyst Justin Post upgraded the rating on Activision Blizzard (NASDAQ: ATVI) from Neutral to Buy, and raised the price target from $20.00 to $25.00.

In the report, Bank of America noted, “We see several upcoming title catalysts including a Diablo 3 expansion (3/25), Destiny (9/9), a WoW expansion (2H14), Hearthstone (out of Beta this quarter), and an online version of Call of Duty in China (possibly 2H14). Given this title slate, we see greater relative revenue and earnings upside potential than for EA. We think Destiny could be ‘the' title of E3 and a top game for next-gen console players this year. Also, a WoW expansion pack should aid sub trends. Based on strong early next-gen console sales and title line up, we are increasing our PO to $25 (from $20) based on 18x our higher 2015E EPS of $1.38 (up from $1.31), a P/E multiple in-line with EA.”

Activision Blizzard closed on Wednesday at $20.60.

Latest Ratings for ATVI

DateFirmActionFromTo
Dec 2017BTIG ResearchInitiates Coverage OnBuy
Dec 2017Goldman SachsUpgradesNeutralBuy
Nov 2017Hilliard LyonsUpgradesUnderperformNeutral

View More Analyst Ratings for ATVI
View the Latest Analyst Ratings

Posted-In: Bank of America Justin PostAnalyst Color Upgrades Analyst Ratings

 

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