'Overwatch' Could Put Activision Q2 Results Over Street Estimates

Bank of America Merrill Lynch raised its estimates on Activision Blizzard, Inc. (NASDAQ: ATVI) for "Overwatch" in its report released Monday.

The analysts lifted their price target to $44 based on 20x their higher CY17 EPS. The multiple used is "in line with Electronic Arts Inc. (NASDAQ: EA) despite lower net cash."

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This move was driven by raised estimates on strong performance of Activision's "Overwatch" title, currently estimated to sell 11.6 million units in CY16.

The analysts maintain their Neutral rating, stating, "Overwatch a strong new franchise, but still see more holiday upside for EA's Battlefield."

Full ratings data available on Benzinga Pro.

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