NEW YORK (TheStreet) -- Activision Blizzard (ATVI) had its third quarter EPS estimates hiked to 17 cents per diluted share from its previous estimate of 12 cents per diluted share by analysts at Pacific Crest who made the call based on the success of the video game maker's newest product "Destiny".
The game has reached over $500 million in sell-in revenue since its release on September 9, making it the biggest new IP (intellectual property) video game launch ever.
The firm increased its forecast and now expects Destiny to sell-in $510 million on 9.5 million units, up from its previous estimate of $377 million on 7 million units.
TheStreet Ratings team rates ACTIVISION BLIZZARD INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate ACTIVISION BLIZZARD INC (ATVI) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."