Gaming stocks: BofA hikes PT on surge in casino, action mobile games

SciPlay

07/07/2020 17:00

** Brokerage BofA hikes PT on Activision Blizzard Inc
 ATVI.O  to $84 from $80, Sciplay Corp  SCPL.O  to $16 from
$14.30 and Electronic Arts  EA.O  to $136 from $130 
    ** Says casino- and action-themed mobile games were among
the biggest beneficiaries of shelter-in-place orders in
April/May 
    ** Sustained uplift in y-o-y trends for these themes are
most positive for SCPL and ATVI, respectively, given their
exposure - BofA
    ** Says growth for casual and sports mobile games have
already returned to pre-COVID levels 
    ** New PT implies marginal upside for EA, 6% for SCPL and
~7% for ATVI, as per the stocks' last closing price
    ** SCPL up 3.5%, EA up 2% and ATVI up 1.4% in morning
trading   
    ** SCPL appears to be one of the biggest beneficiaries of
stay-at-home period in its gaming coverage group as y-o-y growth
in April/May was ~15x-20x higher than the pre-COVID levels in
February - BofA
    ** However, BofA says it is still unclear what will happen
to player engagement once the shelter-in-place order lifts
    ** YTD, EA is up ~28%, ATVI is up ~35%, SCPL is up ~27%

 (Reporting by Ayanti Bera in Bengaluru)
 ((Ayanti.Bera@thomsonreuters.com; 646 223 8780 - 3401;))