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Re: Activision and
BLOPS3
I've seen at least a couple of articles in recent days
increasing price targets due to the accretive earnings boost. I'm
stunned that 30% earnings accretion is rewarded with 0% stock move.
Right now it's trading at around 17x 2016 earnings, which is
relatively cheap compared to its recent valuation and to the
market. I would expect $40 by early February, when they report a
successful FY and give 2016 guidance that's about 25% higher than
current expectations of $1.60 (Yahoo Finance). The high est is
$2.12 so some changes have already been filtering in there, but
clearly not all estimates have been updated since the King
deal.
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