Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Analyst Upgrades Activision Blizzard on High Chances Microsoft Deal Will Close

Stock Markets Jul 25, 2022 09:35AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters Analyst Raises Activision Blizzard to Outperform on High Chances Microsoft Deal Will Be Completed
 
ATVI
+0.80%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
MSFT
+2.10%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Senad Karaahmetovic

A MoffettNathanson analyst upgraded Activision Blizzard (NASDAQ:ATVI) to Outperform from Market Perform.

The activist's $95 per share price target on ATVI stock reflects Microsoft’s $95 cash offer. The analyst sees “strong rationale” for why Microsoft (NASDAQ:MSFT) should be able to close the acquisition.

“No, we don’t think the timing of resolution is necessarily imminent. But it’s not wrong to suggest that the Microsoft-Activision deal is entering its final stage,” the analyst told clients in a note.

The analyst doesn’t see “much political heat from Washington” as far as this M&A is concerned.

“We continue to believe that the deal should be approved. It’s difficult for us to see how the transaction could inexorably alter the competitive landscape in the video game market. Sure, Call of Duty is an important console video game. Would it be enough, even if it were transformed into an Xbox exclusive, to allow Microsoft to steamroll Sony (not rated) and Nintendo (not rated)? And to such a degree as to allow it to squeeze smaller publishers and gamers alike? Highly doubtful, in our view,” the analyst added.

Finally, the analyst says that buying ATVI stock at these levels is “an uncorrelated return opportunity that we find increasingly compelling.”

Analyst Upgrades Activision Blizzard on High Chances Microsoft Deal Will Close
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email