ATVI, EA: Game Stocks Move on Upgrades, Downgrade

by Christopher Freeburn | March 13, 2014 10:09 am

ATVI, EA: Game Stocks Move on Upgrades, Downgrade

On Thursday, video game developer stocks were moving in different directions after a Wall Street offered different assessments of their likely outlooks.

VideoGamer185 ATVI, EA: Game Stocks Move on Upgrades, Downgrade[1]
Source: Flickr[2]

An analyst at Bank of America (BAC[3]) raised his rating[4] for Activision Blizzard (ATVI[5]) from “Neutral” to “Buy.” He also increased his price target for ATVI stock from $20 a share to $25 a share. The BAC analyst said that a number of upcoming ATVI gaming titles promised to boost revenue and earnings for ATVI, compared to rival Electronic Arts (EA[6]), Benzinga notes.

ATVI stock climbed almost 2% in Thursday morning trading. Over the past 12 months, ATVI stock has gained more than 35%.

The same BAC analyst took a less favorable view[7] of EA, lowering his rating for EA stock from “Buy” to “Neutral.” He also trimmed his price target for EA stock from $36 a share to $35 a share.

EA stock slipped modestly in Thursday morning trading on news of the downgrade. EA stock has gained more than 55% over the past year.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2013/03/VideoGamer185.jpg
  2. Flickr: http://www.flickr.com/photos/caitlinmonahan/6479429813/
  3. BAC: http://studio-5.financialcontent.com/investplace/quote?Symbol=BAC
  4. raised his rating: http://www.benzinga.com/analyst-ratings/analyst-color/14/03/4388061/update-bank-of-america-upgrades-activision-blizzard-ahea
  5. ATVI: http://studio-5.financialcontent.com/investplace/quote?Symbol=ATVI
  6. EA: http://studio-5.financialcontent.com/investplace/quote?Symbol=EA
  7. less favorable view: http://www.benzinga.com/analyst-ratings/analyst-color/14/03/4388192/update-bank-of-america-downgrades-electronic-arts-on-mul

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