Buy buy buy. Wedbush Morgan’s Michael Pachter just raised his rating on Activision from buy to strong buy ahead of an expected approval of the firm’s merger with Vivendi on July 8.
The analyst issued a first target for the 12 months ending Dec 2009 of revenue at $5.26 billion and pro forma EPS of $1.50.
Lazard Capital’s Colin Sebastian also issued a note this afternoon raising the firm’s price target to $40 from $33.
“We believe the transaction is set to create a formidable new digital media powerhouse and the most valuable interactive entertainment company worldwide, unlocking the value of industry juggernaut World of Warcraft, and possibly also setting a new benchmark for profit margins among publicly traded video game pure-plays.”