Activision blizzard: Wells Fargo raises to ‘overweight’

( – Wells Fargo announced on Monday that it had raised its recommendation on Activision Blizzard to ‘overweight’, with a target price of 95 euros, while the takeover of the video game group by Microsoft seems to be more and more compromise.

In a research note, the broker believes that Wall Street is undervaluing the company on the stock market, regardless of the outcome of the deal, and sees a “fundamentally asymmetric” risk-return profile.

Wells Fargo is optimistic about the company’s prospects, even as an independent entity, given recent record scores for the ‘Call of Duty’ franchise, the popularity of ‘Overwatch 2’ and the strength of its mobile activity.

The analyst particularly praises the extent of the group’s intellectual property, its large number of PC users and its investments in the attractive mobile market, all of which, in his view, deserve a valuation premium.

The European Commission opened an in-depth investigation earlier this month to assess the proposed acquisition of Activision Blizzard by Microsoft, an operation which also risks being blocked by the FTC (Federal Trade Commission).

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