NEW YORK (TheStreet) -- Shares of Activision Blizzard  (ATVI)  were largely flat in late-afternoon trading on Wednesday ahead of the video game developer's 2016 third quarter results, due out after tomorrow's market close. 

Wall Street is expecting earnings and revenue to rise year-over-year. 

Analysts surveyed by FactSet are forecasting adjusted earnings of 42 cents per share on revenue of $1.57 billion. 

For the same period last year, the Santa Monica, CA-based company posted adjusted earnings of 21 cents per share and $1.04 billion in revenue. 

Piper Jaffray analysts said in a recent note that they view advertising in King Digital Entertainment games, eSports and consumer products/content as the main categories of incremental growth for Activision. 

The firm has an "overweight" rating and $51 price target on shares of Activision, according to TheFly

Earlier this yaer, Activision purchased King, the maker of mobile game Candy Crush, for $5.9 billion. 

Activision could add more than $1 billion of incremental revenue by 2020, Piper Jaffray added. 

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

The team rates Activision Blizzard as a Buy with a ratings score of B. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, good cash flow from operations and expanding profit margins. The team feels its strengths outweigh the fact that the company has had sub par growth in net income.

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