Oppenheimer Believes Activision Blizzard (NASDAQ: ATVI) Won’t Stop Here

By Austin Angelo

Oppenheimer analyst Andrew Uerkwitz reiterated a Buy rating on Activision Blizzard (NASDAQ: ATVI) today and set a price target of $70. The company’s shares closed yesterday at $60.68, close to its 52-week high of $61.10.

Uerkwitz wrote:

“We believe Overwatch is Activision’s most important title. It’s a combination of Blizzard’s deep story telling ability, a game built for a changing gamer demographic, and broader industry trends (digital game delivery + eSports) that will make this title a generational game changer. Understanding the long-term implications and impact of Overwatch will go a long way to understanding ATVI’s strategy as well as our investment thesis and possibly the broader direction the industry is moving toward (inclusivity, MTX, eSports, and transmedia strategy). Putting this into numbers, we believe the company can more than double its MAUs over the next 3-5 years and potentially more than quadruple the number.”

According to TipRanks.com, Uerkwitz is a 4-star analyst with an average return of 7.5% and a 52.4% success rate. Uerkwitz covers the Consumer Goods sector, focusing on stocks such as Axon Enterprise Inc, Tower Semiconductor, and Himax Technologies.

Currently, the analyst consensus on Activision Blizzard is Strong Buy and the average price target is $62.14, representing a 2.4% upside.

In a report released yesterday, Benchmark Co. also maintained a Buy rating on the stock with a $71 price target.

The company has a one year high of $61.10 and a one year low of $35.12. Currently, Activision Blizzard has an average volume of 6.29M.

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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., King Digital Entertainment 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 childrens, 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 King Digital Entertainment segment distributes its content and services on online social platforms. 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.