NEW YORK (TheStreet) -- Shares of Activision Blizzard (ATVI) are up 1.12% to $21.72 as reviews fueled Pacific Crest analysts' optimism on the commercialization potential of its Call of Duty Online video game in China.
Call of Duty Online is currently the most anticipated upcoming game on Tencent's gaming portal, analysts said, citing approximately 3,700 reviews on games.qq.com that yielded a 9.5 user rating out of 10.
"After reading consumer reviews of the closed beta version, we are much more optimistic it will be a success," analysts said about the game set to release in China on January 11, 2015.
"Monetization will be modest in Q1 as you would expect from a free-to-play game, but if Call of Duty Online could grow to be as big as CrossFire, it could contribute as much as 30 cents to Activision's annual EPS," analysts added.
Separately, TheStreet Ratings team rates ACTIVISION BLIZZARD INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ACTIVISION BLIZZARD INC (ATVI) a HOLD. The primary factors that have impacted our rating are mixed--some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."