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Nomura Upgrades Activision Blizzard, Bullish On 'WoW Classic' And 'Overwatch'

Dave Royse

Activision Blizzard, Inc. (NASDAQ: ATVI) looks to have several things going for it from its past, with a new “World of Warcraft Classic,” and from the future with a strong move into mobile games, Nomura Instinet said Thursday in upgrading the stock.

The Analyst

Nomura Instinet’s Andrew Marok upgraded Activision Blizzard to Buy and boosted the target price from $49 to $64.

The Thesis

Marok said last month’s launch of "World of Warcraft Classic" has driven “strong, above-expectations engagement,” and "Overwatch" has added new features and a launch on Nintendo Switch.

“This provides a much more favorable backdrop heading into November’s BlizzCon, which we expect will see the reveal of a "World of Warcraft" expansion for 2020 release and at least one of "Diablo 4" (more likely) or "Overwatch 2," which are both in development,” he wrote in a note.

Marok also likes a positive initial review reception for the new "Modern Warfare" game launching next month, among other game-specific tailwinds he sees for the company.

In particular, "Call of Duty Mobile" has a significantly large potential market.

“Mobile is a clear emphasis for ATVI, and we think that further inroads here are too attractive to ignore," Marok wrote.

Price Action

Activision Blizzard's stock traded higher by 3% to $56.60 per share.

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Photo credit: Marco Verch, via Wikimedia Commons

Latest Ratings for ATVI

Date Firm Action From To
Sep 2019 Maintains Buy
Sep 2019 Upgrades Neutral Buy
Sep 2019 Maintains Buy

View More Analyst Ratings for ATVI
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