Piper Sandler has boosted targets on the big videogame publishers as it awaits upside from their holiday-season earnings reports, and shares in the companies are higher amid a general market rebound.
Electronic Arts (NASDAQ:EA) is up 1.4% today; Activision Blizzard (NASDAQ:ATVI) is up 2.2%; and Take-Two Interactive Software (NASDAQ:TTWO) is up 1.6%.
Piper gave the biggest raise to EA, boosting its target to $124 from $106 (11% upside implied). The company reports on Thursday, and analyst Michael Olson thinks Star Wars Jedi: Fallen Order could lead to a beat as well as a “modest increase” to a somewhat conservative 2020 outlook.
The firm raised its target on Activision Blizzard to $69 from $62 (16% upside); it expects a possible slight upside in the Feb. 6 earnings report along with 2020 guidance that should be conservative after a number of 2019 headwinds.
And it’s raised its target on Take-Two to $141 from $134 (13% upside), with earnings positivity from Outer Worlds, Borderlands 3 and GTA Online. The company also reports on Feb. 6.
