Benzinga | Nov 18, 2021 09:13AM EST

JPMorgan Knocks Off Activision Blizzard Price Target By 12%, Downgrades To Neutral

* JPMorgan analyst Alexia Quadrani downgraded Activision Blizzard Inc (NASDAQ:ATVI) to Neutral from Overweight with a price target of $88, down from $100, implying a 37.1% upside.

* The ongoing misconduct allegations against CEO Bobby Kotick suggest an overhang will remain on the shares, Quadrani tells investors in a research note.

* The analyst says continued adverse press reports and "fresh allegations" give her pause on the company's ability to hire and retain talent and execute on its pipeline.

* Without resolution of these challenges, Activision shares will not be able to outperform, contends Quadrani.

* Related Content: WSJ Says Activision Blizzard CEO Feigned Ignorance About Employee Sexual Misconduct For Several Years

* Price Action: ATVI shares traded lower by 0.55% at $63.85 in the premarket session on the last check Thursday.