UPDATE: Brean Capital Reiterates On Activision Blizzard On 2H14 Upside Potential

In a report published Wednesday, Brean Capital analyst Todd Mitchell reiterated a Buy rating on Activision Blizzard ATVI, and raised the price target from $23.00 to $24.00. In the report, Brean Capital noted, “We see the potential for upside in Activision's 2H14 Line-up. Activision opened 2014 with a $0.10-beat on the bottom line, but remains conservative. The concern is warranted given the back-ended shape of the year ahead, with no AAA titles scheduled to launch in 2Q14. However, we believe the company will lean on its new free-to-play (FTP) franchise Hearthstone to carry it to a blockbuster launch of new IP Destiny before closing the year with a resurgence from Call of Duty. "Along the way, the company continues to push margins even higher, while adroitly managing its older franchises (World of Warcraft) and investing in new ones (Heroes of the Storm, Call of Duty China). We do not anticipate significant catalysts in the near term, but look for a strong close to the year as the next gen console install base continues to percolate. Given our favorable outlook for the video game group in general, and ATVI in particular, we are raising our target price on ATVI to $24 from $23 and reiterate our Buy rating.” Activision Blizzard closed on Tuesday at $19.31.
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Posted In: Analyst ColorPrice TargetAnalyst RatingsBrean CapitalTodd Mitchell
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