UFC Bouying Wall Street Perceptions of THQ
May 27, 2009
StreetInsider.com reveals the news that stock analyst Brean Murray has issued a hold recommendation for the THQ stock, with the success of the UFC 2009: Undisputed videogame playing a prominent role:
Brean analyst says, “While we believe UFC Undisputed is likely to be a hit, pre-sales for Red Faction Guerilla are off to a slow start and key franchise properties under the WWE and Nickelodeon banners are expected to decline YoY, suggesting FY10 may prove challenging post F1Q results………. we think THQ shares fairly reflect the strong early reception for UFC Undisputed against the greater uncertainty later in the year. We believe further evidence that THQ’s internal development efforts can consistently deliver the hit games needed to drive leverage through the model will be needed for the stock to work higher from current levels.”
While not a buy, the hold recommendation has to be looked on with a silver lining. The company had a significant loss in its’ last quarterly filing, but the UFC’s game initial success as well as possible viability as a going franchise is giving industry touts a reason for optimism.
