Activision Blizzard +1.6% as Morgan Stanley sees bullish eSports path
Activision Blizzard is up 1.6% as Morgan Stanley raises its bull case to a $100 price, based on eSports.
That sum-of-the-parts analysis would mean 40% upside; the firm's sticking with its Overweight rating and $75 target (implying 5.3% upside) for now.
Audiences for Overwatch League are two times bigger than analyst Brian Nowak and team anticipated, and related revenues could be 1.4 times higher than projections.
Meanwhile, Nowak expects a Call of Duty eSports league in 2019, and upside (amounting to $17M in gambling revenue in 2020) from the Supreme Court's decision allowing states to legalize sports betting.