New games, cost cuts may push Activision shares up 50 percent: Barron's
NEW YORK |
NEW YORK (Reuters) - Videogame maker Activision Blizzard may see its share price rise significantly, helped by the impending release of a new game and a recent business partnership in China, financial newsweekly Barron's reported in its August 6 edition.
Activision shares, which are down about 10 percent this year and are currently trading at about $11.25, could rise as much as 50 percent due to new products and improved cost-cutting, with one analyst at BMO Capital Markets predicting the stock to hit $17, Barron's said.
Activision, which is debt-free and repurchased shares in the first half of 2012, recently formed a partnership with Tencent Holdings, China's largest Internet provider, to make its popular "Call of Duty" game available online.
Like its competitors, the Santa Monica-based company's share price has fallen due to a slowdown in demand for packaged videogames used with traditional game consoles, challenged by the growing popularity of cheaper products played on smartphones and tablets, Barron's reported.
(Reporting By Katya Wachtel: Editing by Maureen Bavdek)
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