Activision Blizzard is already at the forefront of thefastest growing sector in the industry -- the music category --with its "Guitar Hero" blockbuster, the newspaper said in itsAug. 31 edition.
The Santa Monica, California-based company, the firstWestern gaming company to gain a major presence in China, alsodominates the world of online games, with hits including"Starcraft" and "World of Warcraft," according to Barron's.
BMO Capital Markets' game analyst Ed Williams seesActivision shares climbing to $15, up 29 percent from theircurrent levels, the newspaper said.
The company, formed last July through the merger ofActivision with Blizzard, the former games unit of France'sVivendi SA (VIV.PA), is also attractive from a financialperspective, Barron's said, noting it has no debt and about $3billion in cash.
While franchises such as "Guitar Hero" helped the companyweather the global recession better than some rivals, ChiefExecutive Bobby Kotick told Barron's in an interview that theglobal downturn and high unemployment is a concern for thebusiness.
Activision reported a better-than-expected second-quarterprofit but cut its third quarter forecast.
Shares in the company closed at $11.69 on Friday. (Reporting by Elinor Comlay, editing by Leslie Gevirtz)
Article Source: www.reuters.com.
