Paul-Jon McNealy, of American Technology Research, yesterday raised his rating on video game publisher THQ (THQI) to Buy from Neutral. He also raised his price target on the stock to $41 from $32.50.
McNealy asserts that investors are becoming interested in the video game sector again, with the launch of the Sony (NYSE:SNE) Playstation 3 in Europe later this month and a slate of high profile games coming this summer and fall.
“We feel more confident in THQI’s line-up for FY 08 and prospects for continued growth,” he wrote in a research note. “THQI has delivered better than any other publisher over the past 18 months and we believe can continue to do so over the next 6-12 months.”
In his report, McNealy rattles off a long list of coming game titles for THQ:
Several new Pixar-related titles, including Ratatouille and Cars II (it’s a game sequel; there is no Cars II movie that anyone knows about). Nickelodeon games moving to the Nintendo Wii. Frontlines, a new war game, coming in September. New versions of Juiced and MX. Revival of its Red Faction franchise in FY 2008.
THQ yesterday was up 77 cents at $32.51.
THQI 1-yr chart