Shall We Play A Game? Upgrades For ATVI, THQI, ERTS

Kaufman Brothers analyst Todd Mitchell this morning raised his ratings on Activision Blizzard (ATVI), Electronic Arts (ERTS) and THQ (THQI), While Mitchell also is cutting estimates and price targets for the stocks, he thinks they are “oversold in a tough market.”

It’s not exactly a table-pounding buy; his notes advise against trying to “catch a falling knife,” but instead suggest investors ought to be ready to buy them when the economy settles down. Not a big surprise, then, that the reaction to the call is lukewarm.

  • For Activision Blizzard, Mitchell goes to Buy from Hold, while cutting his target to $17.50 from $19. He maintains a 2008 EPS estimate of 60 cents, but trims 2009 to 70 cents from 72 cents. He says that the Activision and Blizzard combination is “powerful,” and that “the stock is at a point where investors should begin to get constructive with the goal of putting new money to work as we signs of economic stability emerging.”
  • For Electronic Arts, his rating goes to Buy from Hold, but his estimate drops to $42.50 from $58. For the March 2009 fiscal year, his EPS estimate drops to $1.25 from $1.35; for ’10, he goes to $1.90 from $2.13. Despite the lower estimates, he contends the stock is oversold.

Read the rest of this post

Must-Reads from other Websites

Panos Mourdoukoutas

Why Apple Should Buy China’s Xiaomi

Paul Graham

What I Didn’t Say

Benjamin Bratton

We Need to Talk About TED

Mat Honan

I, Glasshole: My Year With Google Glass

Chris Ware

All Together Now

Corey S. Powell and Laurie Gwen Shapiro

The Sculpture on the Moon

About Voices

Along with original content and posts from across the Dow Jones network, this section of AllThingsD includes Must-Reads From Other Websites — pieces we’ve read, discussions we’ve followed, stuff we like. Six posts from external sites are included here each weekday, but we only run the headlines. We link to the original sites for the rest. These posts are explicitly labeled, so it’s clear that the content comes from other websites, and for clarity’s sake, all outside posts run against a pink background.

We also solicit original full-length posts and accept some unsolicited submissions.

Read more »