Activision Blizzard Stock Price (ATVI:NSD) Strong Buy, Target of $90.14

by: Gillian Lawrence
Activision Blizzard Stock Price

Activision Blizzard Stock Analysis:

 
Analysts rate Activision Blizzard with a consensus Strong Buy rating. With a 12-month average price target of $90.14 per share.
 
Activision Blizzard stock average target price will be USD 90.14. The average analyst recommendation on Activision Blizzard Inc. is Strong Buy. Activision Blizzard Inc.’s stock analysis by Stock Target Advisor is Neutral. Based on 7 positives and 7 negative signals. Activision Blizzard stock was trading at USD 76.59 at the most recent close. The Activision Blizzard Stock Price has changed by +3.01% over the previous week, +5.34% over the previous month, and +23.99% over the previous year.
 

About Activision Blizzard (ATVI:NSD)

 
Together with its subsidiaries, Activision Blizzard, creates and disseminates interactive entertainment products and services. They cater:
  • Across the Americas
  • Europe
  • The Middle East
  • Africa
  • Asia Pacific
 Activision, Blizzard, and King are the three business divisions that make up the firm.
 
The company deals in:
  • Creating and distributing content and services for subscription
  • Full-game and in-game purchases on gaming consoles
  • Desktops
  • Mobile Devices
It also licenses software to companies that sell Activision and Blizzard goods. Battle.net is a company-owned online gaming platform. It allows for the:
  • Digital Dissemination of Content
  • Online Social Interaction
  • The Production of User-generated Content.
Additionally, it manages:
  • Esports leagues
  • Offers digital advertising content
  • Offers Third-party Interactive Entertainment Software Publishers
  • Gear Manufacturers Warehousing
  • Logistics
  • Sales Distribution Services
The company’s most popular product franchises are:
  • Call of Duty
  • World of Warcraft
  • Diablo
  • Hearthstone
  • Overwatch
  • Overwatch League
  • Candy Crush
Through third-party distribution and license agreements, it provides services to:
  • Retailers and distributors
  • Mass-market retailers
  • Consumer electronics stores
  • Discount warehouses
  • Game specialist stores
The business’s main office is in Santa Monica, California.
 

Fundamental Stock Analysis:

Positive Fundamentals:
 

High market capitalization

 This organization is among the top quartile and is one of the biggest in its industry. These businesses are more reliable.
 

Excellent return on equity

The management of the company has outperformed its competitors. In terms of return on equity over the last four quarters, ranking it in the top quartile.
 

Superior capital efficiency

In the last four quarters, firm management outperformed its counterparts. In terms of return on invested capital, putting it in the top quartile.
 

A healthy cash flow

The last four quarters saw positive total cash flow for the organization.
 

A favourable free cash flow

The last four quarters saw the company generate positive total free cash flow.
 

Superior growth in earnings

In the preceding five years, this stock’s profits growth was in the top quartile for its industry.
 

Outstanding Dividend Growth

Compared to its industry, this stock’s dividend growth has been in the top quartile. Based on the past five-year analysis.
 

Negative Fundamentals:

Excessive volatility

Over the past five years, this company’s total returns have been erratic. Higher above the industry average as well. If you plan to invest in such a stock, be sure your risk tolerance is adequate.
 

Excessive in comparison to wages

The stock is trading above the sector median and at a premium to its peers in terms of price to earnings.

Compared to book value, its overpriced

On a price-to-book value basis, the stock is selling at a premium to the median of its peer group.

 

Overpriced based on cash flow

On a price-to-cash flow ratio, the stock is trading at a premium to that of its competitors. Its pricing is higher than the sector median. Whenever you are thinking about buying, go with prudence.
 

Extremely leveraged

 In terms of debt to equity, the company is heavily leveraged and in the bottom half of its sector rivals. Check the news, though, and study the sector and management remarks. This can be high at times since the business is attempting to grow quickly.
 

Priced excessively based on free cash flow

On a price to free cash flow basis, the stock is trading at a premium to that of its competitors. Its pricing is higher than the sector median.
 

Low Growth in Revenue. 

This stock’s five-year median revenue growth was lower than average.
 

Conclusion of Analysis

The fundamental analysis for Activision Blizzard Inc. stock is Neutral with a  score of 5 out of 10.
Disclaimer

Stock Target Advisor is not a broker/dealer, investment advisor, or platform for making stock buying or selling decisions. Our goal is to democratize and simplify financial information through automated analysis, aggregation of stock information, and education to help investors with their research. No content on our site, blogs or newsletters constitutes – or should be understood as constituting – a recommendation to enter into any securities transactions or to engage in any of the investment strategies presented in our site content. We also cannot guarantee the accuracy of any information presented on our site and in our analysis.

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