Video gaming companies are on deck to report their quarterly earnings results, and Michael Olson of Piper Jaffray offered his take in a research report.
Electronic Arts Inc.
The company's guidance calls for a 6 percent decrease in total revenue to $1.08 billion, which matches the analyst's expectations. However, the company increase its full-year fiscal 2017 guidance slightly higher due to higher digital revenue and a stronger than expected launch of "Battlefield 1."
Shares of Electronic Arts remain Overweight rated with an unchanged $89 price target.
Activision Blizzard, Inc.
The analyst is expecting a 76 percent increase in revenue from the Blizzard segment due to the launch of a "Wow Legion" expansion.
Olson is expecting management to boost its fiscal 2016 guidance modestly based on a conservative outlook for "Overwatch" digital content sales and limited synergies from its King Digital acquisition.
The analyst also believes Activision is on track to generate $1 billion in incremental revenue by 2020 through King advertising, eSports and consumer products and content.
Shares of Activision Blizzard remain Overweight rated with an unchanged $51 price target.
Take Two Interactive
The analyst's bullish stance on the video sector extends to Take-Two Interactive Software, Inc.
In a research report on Monday, Olson reiterated an Overweight rating and $51 price target after the company released its first RDR2 trailer.
The analyst believes that interest in "RDR 2 "ranks "among the best selling titles of the past few years" given the 4.4 million trailer views in a day.
The trailer's release also offers investors much needed visibility into its 3–4-year outlook.
At Last Check ...
- Activision was up 1.91 percent at $45.39.
- Electronic Arts was up 1.43 percent at $84.06.
- Take-Two was up 1.77 percent at $45.78.
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|Oct 2016||Mizuho||Initiates Coverage On||Outperform|
|Sep 2016||Morgan Stanley||Initiates Coverage on||Overweight|
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