Jefferies Releases a Buy Rating on Activision Blizzard

By Jason Carr

In a report released today, Brian Fitzgerald from Jefferies reiterated a Buy rating on Activision Blizzard (NASDAQ: ATVI), with a price target of $55. The company’s shares closed yesterday at $48.80.

According to, Fitzgerald is a top 100 analyst with an average return of 15.6% and a 71.1% success rate. Fitzgerald covers the Technology sector, focusing on stocks such as Endurance International, IAC/InterActiveCorp, and Electronic Arts.

Currently, the analyst consensus on Activision Blizzard is Strong Buy and the average price target is $51.61, representing a 5.8% upside.

In a report released yesterday, Piper Jaffray also maintained a Buy rating on the stock.

Based on Activision Blizzard’s latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $2.01 billion and quarterly net profit of $254 million. In comparison, last year the company earned revenue of $1.46 billion and had a net profit of $333 million.

Based on the recent corporate insider activity of 48 insiders, corporate insider sentiment is negative on the stock. Last month, Michael Morhaime, the Pres. & CEO-Blizzard Ent. of ATVI sold 29,624 shares for a total of $1,456,612.

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Activision Blizzard, Inc. engages in the development and publication of interactive entertainment. It operates through the following segments: Activision Publishing, Inc, Blizzard Entertainment, Inc., and Other. The Activision Publishing, Inc. segment delivers online games through retail and digital online channels available in personal computer, mobile and table devices, to a range of games including children, adults, and among core games as well as mass-market consumers. The Blizzard Entertainment, Inc. segment provides online personal computer gaming including the subscription-based multiplayer online role-playing game category through the system of subscriptions, retail of physical boxed products, online download sales of personal products and downloading via third-party console. The Other segment refers to businesses such as Activision Blizzard Media Networks which focuses on eSports industry; the Activision Blizzard Studios which devoted to creating original film and television content based on the library on the company’s intellectual properties; and Activision Blizzard Distribution which consists of operations in Europe that provide warehousing, logistical, and sales distribution services to third-party publishers of interactive entertainment software, the company’s publishing operations, and manufacturers of interactive entertainment hardware. The company was founded in 1979 and is headquartered in Santa Monica, CA.