The Zacks Analyst Blog Highlights:Tesla Motors, Take-Two Interactive, Microsoft, Electronic Arts and Activision Blizzard
CHICAGO, July 10, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Tesla Motors, Inc. (Nasdaq:TSLA-Free Report), Take-Two Interactive (Nasdaq:TTWO-Free Report), Microsoft (Nasdaq:MSFT-Free Report), Electronic Arts (Nasdaq:EA-Free Report) and Activision Blizzard (Nasdaq:ATVI-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Wednesday's Analyst Blog:
Tesla Sued in China for Trademark Infringement
Share price of Tesla Motors, Inc. (Nasdaq:TSLA-Free Report) plummeted 1.6% to $219.07 on Jul 8, after a trademark infringement charge was leveled against the automaker by businessman Zhan Baosheng in China. In January this year, Tesla had announced the settlement of the trademark dispute with Zhan Baosheng and had initiated the supply of Model S vehicles to China in Apr 2014.
Zhan Baosheng owns the Tesla trademark in China since 2006, much ahead of the automaker's entry into the Chinese market. Tesla's entry into China was delayed by this trademark issue. Notably, Baosheng had planned to sell the trademark to Tesla. However, the deal did not take shape.
Baosheng has filed a lawsuit against Tesla demanding a compensation of about $3.85 million and closure of all its operation in China. The case will be held in the Beijing Third Intermediate Court on Aug 5. This lawsuit has marred Tesla's expansion plans in China to a considerable extent.
Tesla expected that China will become the biggest global market for the company. The automaker is currently focusing on international expansion, particularly in China – deemed to be the world's largest automobile market – to boost sales. The company is planning to establish new stores, service centers and a Supercharger network in the nation. Additionally, the electric carmaker plans to open 10 to 12 stores in China by the end of 2014. Tesla also expects China to account for 30–35% of its global sales growth in 2014. Also, Tesla intends to start manufacturing cars in China by 2017–2018.
Battleborn: New Franchise from Take Two Interactive
2K, a division of Take-Two Interactive (Nasdaq:TTWO-Free Report), and Gearbox Software recently announced a new franchise Battleborn, which is in development. The game is set to be released in Mar 2016 on Microsoft's (Nasdaq:MSFT-Free Report) Xbox one, Sony's PlayStation 4 and Windows-based personal computers.
2K and Gearbox Software are well-known as the developer and publisher of the Borderland franchise, which to-date has sold more than 9 million units globally. Much in the lines of Borderlands, Battleborn is a first person shooting game, set in distant future of a make-believe universe. Gamers can play in both competitive as well as co-operative modes.
The new game will help Take-Two solidify its position in the first-person shooting game genre, going forward. The attractive features and interesting storyline of the game will help Take-Two capture console market share amid significant competition from Electronic Arts (Nasdaq:EA-Free Report) and Activision Blizzard (Nasdaq:ATVI-Free Report).
We believe that Take-Two's robust pipeline is the key growth catalyst for fiscal 2015 and beyond. The company will benefit from the launch of NBA2K15, Evolve, next-gen WWE title, Borderlands: The Pre-Sequel and Civilization: Beyond Earth.
Post the phenomenal success of Grand Theft Auto V (GTA V) in fiscal 2014, the company is expected to benefit from the game's release on PS4 and Xbox One this fall. The upcoming update to the online version is also expected to boost Take-Two's top-line growth in the near term.
For fiscal 2015, the company expects non-GAAP net revenue in the range of $1.35 to $1.45 billion, while earnings are expected in the range of 80 cents to $1.05 per share. Both revenues and earnings per share are expected to significantly decrease on a year-over-year basis, due to modest growth expectations from GTA V in fiscal 2015.
Although Take-Two has a healthy product pipeline, we believe that it will be challenging for the upcoming games to repeat the success of GTA V in fiscal 2015. Take-Two is rumored to release the next installment of GTA V in 2017.
Although we believe that GTA has a loyal customer base, a 2017 release will be way too slow to capture market share from the likes of EA's Battlefield and Activision's Call of Duty, both enjoying annual iterations that keep the franchises fresh.
Moreover, Take-Two's overdependence on console gaming sales and lack of mobile gaming titles is a major headwind in the long run.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
Get the full Report on TSLA - FREE
Get the full Report on TTWO - FREE
Get the full Report on MSFT - FREE
Get the full Report on EA - FREE
Get the full Report on ATVI - FREE
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO
SOURCE Zacks Investment Research, Inc.
Share this article