Activision Blizzard Inc. (ATVI:NSD) Analysts are Bullish with a Strong Buy rating

STA Research
by: STA Research
Activision Blizzard Inc.

Based on the Activision Blizzard stock forecast from 3 analysts, the average analyst ATVI target price is USD 91.33 over the next 12 months. Activision Blizzard Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Activision Blizzard stock forecast is Neutral, which is based on 6 positive signals and 7 negative signals. At the last closing, ATVI stock price was USD 80.73ATVI stock price has changed by -0.27% over the past week, +3.34% over the past month and -3.72% over the last year.

Activision Blizzard, Inc., together with its subsidiaries, develops and publishes interactive entertainment content and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates through three segments: Activision, Blizzard, and King. The company is headquartered in Santa Monica, California.

 

What we like:

High market capitalization:

Activision Blizzard stock is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior capital utilization:

ATVI stock forecast shows that the company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow:

ATVI stock forecast shows that the company had positive total cash flow in the most recent four quarters.

Positive free cash flow:

ATVI stock forecast shows that the company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth:

ATVI stock price has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Dividend Growth:

ATVI stock price has shown top quartile dividend growth in the previous 5 years compared to its sector

 

What we don’t like:

Below median dividend returns:

ATVI stock forecast shows that the company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings:

ATVI stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value:

ATVI stock price is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis:

ATVI stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged:

ATVI stock forecast shows that the company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the Activision stock forecast and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis:

ATVI stock price is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Revenue Growth:

ATVI stock price has shown below median revenue growth in the previous 5 years compared to its sector

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