NEW YORK, NY / ACCESSWIRE / October 10, 2017 / Cowen analysts were less than kind on Monday about the gaming industry in a report, which had traders cautious about gaming companies like Activision Blizzard and Electronic Arts. The analysts argue that, "after a tremendous five-year run, we think the video game stocks are heading into choppy waters." The two analysts noted, "While we don't necessarily expect every name in the group to disappoint on earnings relative to bullish expectations next year (though we do view that as a possibility), even if just one or two names do, we expect it to deflate what we view as aggressively bullish sector sentiment, pressuring valuations across the board."

RDI Initiates Coverage on:

Electronic Arts Inc.
https://rdinvesting.com/news/?ticker=EA

Activision Blizzard, Inc.
https://rdinvesting.com/news/?ticker=ATVI

Electronic Arts Inc.'s shares closed down 1.22% yesterday on mediocre trading volume compared to usual. The stock, as well as other gaming stocks in the arena, saw their share prices decrease after an analyst report on the industry surfaced that wasn't too optimistic. Investment banking firm Cowen downgraded not one, but three companies: Take-Two, Activision, and Ubisoft Entertainment UBSFY. Analyst Doug Creutz and Stephen Glagola said in a report that, "after a tremendous five-year run, we think the video game stocks are heading into choppy waters." He also said, "Implied buy-side expectations for next year suggest a level of aggregate growth that we think is highly unrealistic." It was not too long ago that Barclay's analyst Ryan Gee initiated coverage on four big video game companies and gave EA an "overweight" rating and a $129 price target.

Access RDI's Electronic Arts Inc. Research Report at:
https://rdinvesting.com/news/?ticker=EA

Activision Blizzard, Inc.'s shares closed down 3.27% on Monday with nearly 9 million shares traded. Doug Creutz and Stephen Glagola of Cowen lowered the firm's rating on Activision from "outperform" to "market perform" but maintained a price target of $66 on the stock. According to the analysts, both Activision, as well as Take-Two, are valued fairly currently, but he expects intense competition next year. Creutz noted, "As games engage their audiences for longer periods of time (and generate more revenue thereby), consumers are becoming more selective about which games they play. We expect the number of successful titles to continue to narrow over the next several years."

Access RDI's Activision Blizzard, Inc. Research Report at:
https://rdinvesting.com/news/?ticker=ATVI

Our Actionable Research on Electronic Arts Inc. (NASDAQ: EA) and Activision Blizzard, Inc. (NASDAQ: ATVI) can be downloaded free of charge at Research Driven Investing.

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