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Rap Sheet

Author:

Jester Debunker

Subject:

Off Topic

Date:

11/11/15 at 1:42 PM CST

 

 

READ: 4

RPLY: 1

0

0

RECS:0

Sentiment:

Neutral

Reply to:

MSG`#3097,`11/11/15
By Jam ok

 

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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