Activision Blizzard, Inc.
Activision Blizzard, Inc. (NASDAQ: ATVI) is an interactive entertainment developer and publisher for video game consoles, personal computers (PCs), and mobile devices. Its operating segments are 1) Activision Publishing, Inc., which offers the Call of Duty League franchise, 2) Blizzard Entertainment, Inc., which specializes in the digital distribution of Blizzard and Activision games, as well as online social networking and the development of user-generated content and 3) King Digital Entertainment, whose key offering is Candy Crush saga.
Valuation Methodology: EV/Sales Multiple Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's NTM trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
ATVI Daily Technical Chart (Source: REFINITIV)
ATVI's stock price has increased 15.54% in the past month and is currently leaning towards the lower band of its 52-week range of USD 56.40 to USD 104.53. The stock is currently trading between its 50 and 200 DMA levels, and its RSI Index is at 63.84. We have valued the stock using the EV/Sales multiple-based relative valuation methodology and arrived at a target price of USD 62.00.
Considering the uptick in the stock price, technical indicators, and current valuation, we believe the decent business fundamentals are adequately reflected at current trading levels. Hence, we recommend a "Sell" rating on the stock at the current price of USD 67.115, down 0.13%, as of January 05, 2022, 11:26 AM ET.
* The reference data in this report has been partly sourced from REFINITIV.
* All forecasted figures and industry information have been taken from REFINITIV.