Activision-Blizzard PT Raised to Street-High $90 a Share

Activision-Blizzard continues to grow its total addressable market as live sports largely remain on hold and cinemas push back their reopen dates, according to Needham analyst Laura Martin. Martin raised her price target for the video game stock to $90 a share on Thursday, up from $75. 

eSports upside: Activision has launched its second pro league, this time for its Call of Duty franchise. The opportunity for Activision here is advertising and sponsorships, which account for 69% of all esports industry revenue, according to data cited by Business Insider Intelligence. Activision has teamed up with Excel Sports Management to sell sponsorship rights for the Overwatch League and the Call of Duty League. 

• “We like ATVI’s focus on creating organized eSports leagues built around its games, such as the Overwatch League and Call of Duty League, because these attract sponsorship revenue which represents an incremental new revenue stream for ATVI,” said Martin.

Call of Duty Mobile: Economically, video game industry upside is being driven by mobile games, Martin says in her recent note. That sentiment is echoed by Business Insider Intelligence, which says the mobile gaming segment is set to make up 45% of the total global games market this year. Activision has found a mobile winner in Call of Duty: Mobile, which has reached 250 million downloads since its launch in October, according to Sensor Tower. The research firm also found that players on iOS and Android have spent more than $327 million to date, Sensor Tower estimates.