Activision Blizzard longer term outlook remains favorable, says JPMorgan
JPMorgan analyst Alexia Quadrani lowered her price target for Activision Blizzard to $58 from $63 and keeps an Overweight rating on the shares following the company's Q4 results. The stock may be range bound for the near term given a lack of catalysts and limited view into how in-game services are trending for Call of Duty, Hearthstone, and Overwatch, Quadrani tells investors in a research note. However, her overall thesis though remains unchanged as she remains confident that investors will shift their focus throughout 2019 to the long-term fundamentals supporting the sector, and the 2020 outlook, which is "very likely to include a World of Warcraft expansion and full year of Diablo Immortal." Further, Activision remains a stock with "significant long-term optionality not built into consensus estimates," says Quadrani. The analyst views Activision Blizzard's long-term outlook as favorable.