Wedbush Morgan Securities analyst Michael Pachter has raised the firm's estimates for Activision, Electronic Arts, and THQ, following a 38 percent growth in September video game sales as reported by research firm NPD Group.
According to Pachter, major publisher and developer Activision had a "stronger than expected" quarter, despite generating sales of just $73 million, a 13 percent decline from the same period last year. The analyst has raised its revenue estimate for the company from $135 million to $145 million, noting that it believes that "the company's U.S. performance is representative of its worldwide performance." In addition, Wedbush also has maintained the company's Strong Buy rating and $18 target price. The stock is currently trading at $15.46.