Yesterday, SunTrust Robinson lowered Electronic Arts’ (EA) target price from $116 to $105. The brokerage also lowered Activision Blizzard’s (ATVI) target price from $65 to $62. Activision Blizzard has received a “strong buy” rating from eight analysts, while 13 analysts have a “buy” rating on the stock. The remaining eight analysts polled by Thomson Reuters have rated the stock as a “hold” or some equivalent. Activision Blizzard has a mean consensus price target of $70.69, which represents a 39% upside over its January 9 closing prices. Electronic Arts is trading 35% below its mean consensus price target.
Activision Blizzard has been in the news over the last couple of days. Yesterday, the company announced some new appointments at the leadership level. According to Reuters, Blizzard Entertainment and NetEase have extended their partnership in Mainland China. Their 11-year-old partnership has been extended by another four years. Earlier this year, Netflix (NFLX) hired ATVI’s ex-CFO Spencer Neumann.
China’s (FXI) gaming industry has taken a hit after the country blocked new game approvals. However, in December 2018, China granted some new approvals. The country granted 84 new video games approvals yesterday. According to Reuters, the list doesn’t have any games from Tencent Holdings (TCEHY), the largest gaming company in China. NetEase also doesn’t have any games on the new approval list.