Analysts expect 'aggressive growth' from THQ

Analysts at William Blair and company have revealed they expect 'aggressive growth' from publisher THQ in the next two years.

The company expects THQ to earn US $1.21 per share in 2007, rising to US $1.36 in 2008.

"We believe THQ is well positioned to experience multiple expansion, to a range of from 20 times to 30 times during the upcoming cycle given its stronger balance sheet, growing stable-owned properties, and ability to take market share, scale margins and continue to deliver above-market growth," said analyst Ralph Schackart.

As well as the publisher's strong portfolio and growth of market share, William Blair expects additional performance if in-game advertising and other extra revenue streams begin to perform as expected.

"In addition, we believe THQ's multiple can expand to roughly 35 times (or higher) if the development of incremental market opportunities materialises for the industry, collectively representing a US $7 billion incremental market for THQ beyond the projected US $16 billion publishing market for the US and Europe," he detailed.