4 Analysts Downgrade Activision Blizzard (ATVI:NSD) Stock on Deal Concerns

Activision Blizzard Stock

Analysts Coverage Change:

MoffettNathanson (RANK #557) Downgrades Activision Blizzard Inc. to a “Market Perform” rating and increases the target price to $95 from $91.

Deutsche Bank (RANK #19) maintains a “Buy” rating for Activision Blizzard and increases the target price to $95 from $89.

Benchmark Research (RANK #157) Downgrades Activision Blizzard to a “Hold” rating with a target price of $90.

Stifel Nicolaus (RANK #67) Downgrades Activision Blizzard to a “Hold” rating and increases the target price to $95 from $88.

Raymond James (RANK #4) Downgrades Activision Blizzard to a “Market Perform” rating.

ATVI Ratings by Stock Target Advisor

Activision Blizzard Inc Stock Forecast

According to the forecasts of 13 analysts, the average target price for Activision Blizzard Inc stock over the next 12 months is USD 92.13. This indicates a positive outlook for the company’s stock performance, suggesting potential growth in the coming year. Additionally, the average analyst rating for Activision Blizzard Inc is reported as Buy, indicating a consensus among analysts that the stock is expected to perform well.

Stock Target Advisor’s analysis rates the company as Neutral, based on 7 positive signals and 6 negative signals. This suggests a more cautious stance, with a balance between positive and negative indicators regarding the stock’s potential performance.

At the last closing, Activision Blizzard Inc’s stock price was USD 90.99. Notably, the stock has experienced a significant increase of +9.18% over the past week, +13.20% over the past month, and +16.97% over the last year. These positive changes in the stock price indicate recent growth and potentially favorable market sentiment.

Activision Blizzard News:

The recent court order allowing Microsoft Corp to proceed with its $69 billion acquisition of Activision Blizzard Inc presents potential challenges for the U.S. Federal Trade Commission (FTC) if they decide to appeal, according to legal experts specializing in competition law. The experts suggest that the FTC may face difficulties in establishing the factual record necessary to support their case on appeal.

Antitrust scholar Daniel Crane from the University of Michigan Law School highlights the importance of the factual record in shaping the outcome of an appeal. He suggests that the FTC may struggle to demonstrate the necessary facts to support their case, and without this foundation, their argument may weaken.

Antitrust lawyer Luke Hasskamp notes that appeals courts typically give deference to the factual records established by U.S. judges. This implies that the FTC may face an uphill battle if they choose to challenge the court’s decision on appeal.

The court’s order allowing the Microsoft-Activision Blizzard acquisition to proceed suggests that the judge found the arguments put forth by the FTC unpersuasive or lacking sufficient evidence. To succeed on appeal, the FTC would need to present a stronger case supported by a compelling factual record that demonstrates potential anticompetitive effects or violations of competition law.

The outcome of any potential appeal will have significant implications for the future of the merger between Microsoft and Activision Blizzard. If the court’s decision is upheld on appeal, it would likely clear the way for the acquisition to be finalized. Conversely, if the FTC manages to successfully challenge the court’s ruling on appeal, it could potentially disrupt or even block the acquisition altogether.

The dynamics of mergers and acquisitions in the technology and gaming industry are closely monitored by regulators to ensure fair competition and protect consumers’ interests. Legal battles and regulatory scrutiny surrounding high-profile acquisitions are not uncommon, and the outcome of these cases can shape the competitive landscape of the industry.

As this situation unfolds, legal experts, the FTC, and the parties involved will continue to navigate the complexities of competition law and make their respective arguments. The final resolution will depend on the strength of the FTC’s case on appeal and how the courts interpret the factual record presented.

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