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Activision Blizzard Remains A Top Pick For Pacific Crest

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Activision Blizzard Remains A Top Pick For Pacific Crest

Pacific Crest still recommends Activision Blizzard, Inc. (NASDAQ: ATVI) as its top pick in the sector with the ongoing success of "Overwatch" and its position going forward. The brokerage still expects Activision to post upside to the consensus in the second quarter.

Activision has been participating in the Electronic Entertainment Expo (E3) that is being held at the Los Angeles Convention Center between Tuesday and Thursday of this week.

"While investors and gamers are nervous about Call of Duty due to the developer's track record for quality and a negative reaction to the initial trailer, the company thinks the game showed very well at E3 and is already turning sentiment," analyst Evan Wilson wrote in a note.

Related Link: Elon Musk Endorsement, Facebook Partnership Does Little For Activision's Stock

Activision also thinks the combination with a "Modern Warfare" remaster this holiday is likely to create a unique package, particularly when placed against the competition.

Wilson, who has an Overweight rating on the stock, said the ability to buy "Infinite Warfare," the remaster and the season pass for $99 could also drive up the average selling price.

"It is early, but the Sledgehammer 2017 Call of Duty game sounds interesting," Wilson added.

In addition, Activision announced 10 million players of "Overwatch" with two weeks still left in the quarter.

"We think the tail of the game looks long due to quality and it should sell through the holidays. Adding another big franchise to Activision is key, and Overwatch now certainly feels like that," Wilson highlighted.

At time of writing, shares of Activision were down 0.70 percent to $38.14. Wilson has a price target of $43 on the stock.

Latest Ratings for ATVI

DateFirmActionFromTo
Jul 2019MaintainsOverweight
Jul 2019Initiates Coverage OnBuy
Jun 2019Initiates Coverage OnNeutral

View More Analyst Ratings for ATVI
View the Latest Analyst Ratings

Posted-In: Analyst Color Long Ideas News Price Target Reiteration Events Analyst Ratings Tech Best of Benzinga

 

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