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Activision Blizzard +1.6% as Morgan Stanley sees bullish eSports path

Published 05/16/2018, 10:49 AM
© Reuters.  Activision Blizzard +1.6% as Morgan Stanley sees bullish eSports path
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  • Activision Blizzard (NASDAQ:ATVI) is up 1.6% as Morgan Stanley (NYSE:MS) raises its bull case to a $100 price, based on eSports.
  • That sum-of-the-parts analysis would mean 40% upside; the firm's sticking with its Overweight rating and $75 target (implying 5.3% upside) for now.
  • Audiences for Overwatch League are two times bigger than analyst Brian Nowak and team anticipated, and related revenues could be 1.4 times higher than projections.
  • Meanwhile, Nowak expects a Call of Duty eSports league in 2019, and upside (amounting to $17M in gambling revenue in 2020) from the Supreme Court's decision allowing states to legalize sports betting.
  • Now read: Activision Blizzard's Strong Brands, Practices, And Segments Position It To Gain From Gaming's Continued Rise


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