Market Cap: $29 billion
Stock Return in May: 13.9%
got a recent vote of confidence from Pacific Crest Securities analysts who reaffirmed their overweight rating and raised the price target on the video game company by $2 to $43, aided by strong expectations for Overwatch, its newest game franchise, launched on May 24.
Pacific Crest Securities now expects about 7 million units of Overwatch to sell in the fiscal second quarter, compared with the previous estimate of 5 million units.
"Overwatch has wide appeal with its 'friendly' gameplay, short 6 to 16 minute game sessions (allowing for ads between sessions) and custom camera angles specifically for eSports. Success in eSports would drive more engagement and provide a longer revenue stream due to ancillary revenue streams like events, merchandise and advertising," the May 26 report said. "We continue to recommend ATVI. The success of Overwatch adds another leg to the stool."
Analysts, according to Thomson Reuters, are projecting Activision to report annual EPS of $1.84 a share on revenue of $6.3 billion. The targets are up 39% and 37% from the year prior, respectively.
Activision has a dividend yield of 0.66%.