Activision Blizzard fell 2.45% in early trading as more analysts absorbed CEO controversy

Activision Blizzard fell 2.45% in early trading as more analysts absorbed CEO controversy.A report yesterday says CEO Bobby Kotick told colleagues he could leave if cultural issues at the company weren't fixed quickly.

MKM Partners downgraded the stock to Sell, and cut its price target to $54; that implies 13% downside.

Trust Securities meanwhile is keeping a Buy rating but lowered its price target to $74, from $101.

Similarly bullish Jefferies (Buy rating) is also weighing in on the controversy around Kotick, worrying that an accelerated pace of turnover at the company could cause additional problematic delays to game launches.

The near term is "volatile," and in the long term, the "internal turmoil" will impair the value of the company's intellectual property without a shift in workplace culture, analyst Andrew Uerkwitz says.

Kotick is facing pressure from both the major console makers: Sony's PlayStation chief Jim Ryan says Activision Blizzard hasn't done enough to address the culture, and Microsoft's Xbox chief Phil Spencer says they're evaluating all aspects of their relationship with the videogame maker.