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Activision stock rebounds following analyst endorsement

Piper Jaffary rating helps publisher to gain 11 per cent over the day

Following a bad day on Tuesday, when its stock lost 6.5 per cent and fell to its lowest point since 2006, the Activision Blizzard share price posted significant gains yesterday to bounce back and record an 11 per cent rise.

That was largely to do with an analyst note from Piper Jaffary, which reiterated its buy rating for the Call of Duty and World of Warcraft publisher, noting that the company performed well in its retail checks.

"Following 11 per cent growth during November, we continue to project 5 per cent-plus growth to industry game software sales during the month of December," read the note, according to StreetInsider.com.

"Our checks suggest that Activision's portfolio of 'must-have' titles performed well in the US and in international markets. With a meaningful portion of the top 20 selling games, we believe that Activision is taking share and has out-performed its peer group by a wide margin."

The analyst also mentioned that 2009 might exceed investor expectation, and reiterated its Buy rating.

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Phil Elliott

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