Activision Blizzard (NASDAQ:ATVI) is +3.5% after Needham raises estimates for what it calls one of many greatest beneficiaries of media developments spurred by COVID-19 lockdowns.
Throughout Q2, the agency’s Laura Martin notes, the corporate’s put in base of gamers rose 30%, and play occasions jumped 70%. And the corporate is benefiting from hit content material – Name of Responsibility play occasions rose eightfold in Q2 – in addition to superior execution, she writes.
In the meantime, the agency is happy about Activision’s management place within the burgeoning esports space, with betting trying like a long-term income driver.
Tendencies that Martin is looking out as helpful to valuation embody ongoing videogame development at double regular ranges, and promoting and reside sport viewing; Twitch’s common viewer base is up 73% Y/Y throughout the pandemic; YouTube Gaming Dwell concurrent viewership is up 15.5% sequentially to an all-time excessive; and Fb Gaming jumped 371% in distinctive channels provided (partially on account of Mixer merger).
Needham now sees This fall 2020 EPS at $1.05, up from $0.90, and full-2020 EPS at $3.21, up from $3.05. It is elevating full-year income estimates to $7.763B from $7.625B.
It now expects 2021 EPS at $3.28, up from $3.09, and income of $7.856B, up from $7.7B.
The agency’s $102 worth goal now implies 29% upside.
