JPMorgan Knocks Off Activision Blizzard Price Target By 12%, Downgrades To Neutral

JPMorgan analyst Alexia Quadrani downgraded Activision Blizzard Inc ATVI to Neutral from Overweight with a price target of $88, down from $100, implying a 37.1% upside.
The ongoing misconduct allegations against CEO Bobby Kotick suggest an overhang will remain on the shares, Quadrani tells investors in a research note.
The analyst says continued adverse press reports and "fresh allegations" give her pause on the company's ability to hire and retain talent and execute on its pipeline.
Without resolution of these challenges, Activision shares will not be able to outperform, contends Quadrani.
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Price Action: ATVI shares traded lower by 0.55% at $63.85 in the premarket session on the last check Thursday.