Wedbush Morgan Analyst Rates Activision (ATVI) as Strong Buy- $45 Price Target
Posted on Thursday, June 12th, 2008 | In Current Market News, Stocks to WatchMichael Pachter, analyst at Wedbush Morgan rated Activision (ATVI) as a strong buy yesterday.
The company should merge with Vivendi games by July 11, and the company’s performance should improve due to $850 million in profit contribution from Blizzard Entertainment and Sierra Entertainment, and incremental contribution from the recently announced Guitar Hero World Tour.
Other reasons for the strong buy recommendation:
1. Core publishing should grow from pro forma $2.8 billion in calendar 2007 to around $3.7 billion in calendar 2009, or about 15% compound annual growth rate.
2. Pachter expects management to update guidance for pro forma EPS in the next several weeks, and expect the company to continue its “beat and raise” pattern.
3. The company is well positioned to deliver sustainable, predictable revenue and earnings growth, warranting a premium valuation.
4. Price target is $45, a 34% premium over the price right now.
Check out other Wedbush Morgan picks at:
http://www.trackthepros.com/categories.php?category_id=338
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