Log in to your IBTimes Account

close
ID
Password

Ahead of the Bell: Analyst raises Activision price target



By AP
05 May 2008 @ 08:34 am EST

NEW YORK - Video-game maker Activision Inc. will likely post strong fiscal fourth-quarter growth when it reports this week, an analyst said Monday while raising a price target and adding the company to a list of preferred stocks.

Related Topic

Get stories by e-mail on this topic.

E-mail:
Quotes
ATVI 0 0

SYMBOL LOOKUP

Piper Jaffray analyst Anthony N. Gikas boosted his price target on the Santa Monica, Calif., company to $35 from $31 and placed Activision on Piper Jaffray's Alpha list.

He kept a "Buy" rating on the shares.

The new target implies he expects shares to jump 29 percent above Friday's $27.16 close, and the Alpha grouping is a list of stocks expected to perform well over a short-time period.

Activision makes the widely popular "Guitar Hero" video game franchise, as well as the "Call of Duty" game series and other forms of electronic entertainment. The company is set to be acquired by Vivendi SA to form the world's largest online and console game publisher.

The company may prefer that current shareholders not participate in the $4 billion all-cash tender offer expected as the deal closes, and may move to boost shares above the tender price by releasing upbeat guidance, he said.

For the fourth quarter, Gikas raised his outlook to profit of 9 cents per share from 8 cents per share, and revenue outlook to $410 million from $400 million.

Analysts polled by Thomson Financial expect, on average, earnings of 5 cents per share on revenue of $364.8 million.

Activision is set to report fiscal fourth-quarter and annual results on Thursday.

Shares fell 29 cents to $26.87 in premarket trading Monday.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

    Click!
  • Rate this article:

Comments

Post Your Comment

You must be an IBTimes member to post a comment. Login | Register


advertisement
More Industries
Rescue legislation sailed through the House on Wednesday aimed at helping 400,000 strapped homeowners avoid foreclosure and preventing the collapse of tr...
The weak U.S. dollar has not dissuaded Americans from planning trips abroad this year, but they may be heading to destinations closer to home, according ...
Cash-strapped homebuyers and borrowers facing foreclosure will get some relief from a housing bill passed by the House on Wednesday but the bill won't so...

Advertisement
Corporate Website Design

Professional Website Design For Corporate - Get a Free Quote Today

Latest Investing Research Reports

Find the most up to date research from leading investment firms to make the most informed investing decisions

advertisement
 
IBTimes.com Web
Partners
International Business Times© 2008 The Ibtimes Company. All Rights Reserved. Terms of service | Privacy Policy | Advertising | About Us | Contact Us | Archives