Activision shares off on downgrade

Analyst sees slow to no growth in '07; Wall Street reacts by bidding down publisher's shares.

Activision shares were trading down almost 7 percent today after Banc of America Securities analyst Gary Cooper downgraded the stock from a Buy to a Neutral.

"We believe most, if not all, of the potential positive news regarding Activision's holiday quarter is priced into the stock," Cooper wrote in a research note. In essence, to invest in the company for short-term gain would be ill-advised.

But Cooper sees little long-term potential, either. Stating that the company "is unlikely to grow its earnings in fiscal year 2007," the analyst said that "given the subdued retail traffic ahead of the Xbox 360 launch, the average performance of Gun, and the low ratings of True Crime: New York City, we do not expect Activision to substantially beat its third-quarter-2006 guidance."

At press time, shares in Activision were trading at $15.18, down more than a dollar from the opening bell.

Written By

Want the latest news about Gun?

Gun

Gun

Discussion

5 comments
coreyb42
coreyb42

Why is it spelled "Banc of America Securities" both here and on their site, but it's "Bank of America"?

Wolfcp11
Wolfcp11

Well, they ahve CoD.. but sold TW...

BallGame
BallGame

I just sold a few days ago! Finally timed something right. Of course my Take Two stock is another story. Really thought all that Hot Coffee stuff was some kind of a ploy to release a new GTA unexpectedly.

ryan191919
ryan191919

I own their stock, but I'm not worried. I bought in March and they're still up about 25% since then. In fact, they might be bargain priced right now.

Gum_Bercules
Gum_Bercules

Wow I'm glad that I have no stock, becuase If I did it would be in gaming industries.