From WSJ-
James Lin, an analyst at Wedbush Morgan Securities,
said the most important part of Thursday's news was
that it served to assuage investors who were nervous
after the loss of the WCW license. He said, however,
that didn't think he would change his earnings estimates
as a result of the deal with the WWF. The WWF is a
unit of Titan Sports Inc., Stamford, Conn., and is the
WCW's archrival.
Shares of Jakks Pacific Inc., THQ's partner in the deal,
were unchanged at 10 1/2 on Nasdaq.
"From a fundamental standpoint, it's just another pickle
in the jar for THQ," he said. He rates the stock a "buy"
because of its proven ability to manage its operations
including carefully controlling the amount of inventory
held by retailers and distributors at any given time.
THQ's stock trades at a discount to the price of its
larger rivals, but Mr. Lin said he believes that THQ's
shares should get a boost as investors realize that the
company can produce earnings that are as stable as its
larger peers. His 12-month price target for THQ is $40.
Andrew |
