MKM Partners Reiterates a Hold Rating on Activision Blizzard

By George MacDonald

According to The Fly, in a report released yesterday, Eric Handler from MKM Partners reiterated a Hold rating on Activision Blizzard (NASDAQ: ATVI), with a price target of $44. The company’s shares closed yesterday at $40.56, close to its 52-week high of $43.05.

Handler observed, “We continue to have a favorable view toward Activision’s long-term growth prospects as it continues to expand its franchise brands, further develops a year- round playability model and begins to formulate/rollout business models around mobile advertising, eSports and TV/movie production.”

According to TipRanks.com, Handler is a 5-star analyst with an average return of 11.5% and a 71.3% success rate. Handler covers the Services sector, focusing on stocks such as Cinemark Holdings Inc, Regal Entertainment, and National Cinemedia.

Currently, the analyst consensus on Activision Blizzard is Strong Buy and the average price target is $45.73, representing a 12.7% upside.

In a report issued on July 25, Merrill Lynch also reiterated a Hold rating on the stock with a $44 price target.

The company has a one year high of $43.05 and a one year low of $23.85. Currently, Activision Blizzard has an average volume of 9.79M.

Based on the recent corporate insider activity of 66 insiders, corporate insider sentiment is negative on the stock. Most recently, in June 2016, Michael Morhaime, a the Pres. & CEO-Blizzard Ent. of ATVI sold 1,150,000 shares for a total of $43,867,970.

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.