Analyst predicts huge earnings for ActiBlizz in 2009
Following strong financial results in the past couple of weeks from both Activision and Vivendi Games, one analyst predicts that following the planned merger of the two companies, fiscal 2009 profits could add up to as much as USD 1.38 billion.
Following strong financial results in the past couple of weeks from both Activision and Vivendi Games, one analyst has released his prediction that following the planned merger of the two companies, fiscal 2009 profits could add up to as much as USD 1.38 billion.
Citigroup's Brent Thill is quoted in an article on investor news site Seeking Alpha and rates Activision's stock as 'buy' with a target price of USD 36 - the current trading price is USD 26.69.
But that price has fallen by around 10 per cent in the past month despite full year guidance being revised upwards, and no problems anticipated with the Vivendi merger, which will result in the biggest videogames publisher in the world: Activision Blizzard.
For the next financial year Thill points to "prospects for more European penetration, a strong industry backdrop and a line-up with more international appeal."
Activision recently announced plans to add more titles to its Guitar Hero franchise, which was the highest-value title in 2007, while Vivendi is preparing to release the second expansion to World of Warcraft later this year.