Market Overview

Brean Capital Positive On Activision Blizzard, Sees Return To Growth


Todd Mitchell of Brean Capital reiterated a Buy rating on Activision Blizzard, Inc. (NASDAQ: ATVI) on Monday with a price target raised to $26 from a previous $25.

Mitchell sees Activision's release slate returning the company to growth in the coming years. Specifically, "Overwatch," a new first person shooter IP has been well received thus far. In addition, the company continues to progress in the development of "Heroes of the Storm" and an upcoming expansion for "StarCraft" and "Hearstone."

Shares were up 1.3 percent at $20.93 in the pre-market session.

"We believe Blizzard has the strongest lineup since joining Activision,” Mitchell wrote. “With the introduction of new IP and an acceleration of the shift towards a free-to-play business model, we believe there is now visibility for Blizzard to expand its audience-base and return to growth after four years of negative growth.”

Mitchell sees Activision maintaining or even increasing its “industry leading level of profitability.”

A $26 price target is based on the analyst's 17.5x 2017 free cash flow of $1.3 billion discounted to net present value at 10.7 percent.

Latest Ratings for ATVI

Oct 2019MaintainsNeutral
Oct 2019MaintainsOverweight
Oct 2019MaintainsBuy

View More Analyst Ratings for ATVI
View the Latest Analyst Ratings

Posted-In: Activision Blizzard Blizzard Brean Capital Hearstone OverwatchAnalyst Color Price Target Analyst Ratings


Related Articles (ATVI)

View Comments and Join the Discussion!

Latest Ratings

PTONBank of AmericaInitiates Coverage On29.0
ITRICanaccord GenuityMaintains87.0
GWPHNeedhamInitiates Coverage On200.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

RBC Sees Weak Merck Data As Positive For Gilead

Sterne Agee Sees Opportunities With Latest Obamacare Court Challenge