Ahead of the Bell: Activision climbs premarket on earns

NEW YORK - Shares of Activision Inc. climbed in premarket trading Friday, a day after the video game maker posted a fiscal fourth-quarter profit that was sharply higher than analysts expected.

Cowen analyst Doug Creutz upgraded Activision to "Outperform" from "Neutral" in a note to investors Friday, predicting the stock could outperform the broader market by as much as 20 percent in the next year as its acquisition by fellow game maker Vivendi SA closes.

On Thursday, Activision said it expected the deal to complete in the next few weeks and predicted the new company, Activision Blizzard, would rival Electronic Arts as the world's largest video game publisher.

Separately, a PiperJaffray analyst reiterated his "Buy" rating and raised his price target $1 to $36, praising the company for "another phenomenal quarter."

The price target suggests a 30 percent rate of return on the stock.

Anthony N. Gikas was similarly upbeat on Activision Blizzard, and said several new titles, including a new "James Bond" title and additions to its "Guitar Hero" and "Call of Duty" franchises, have potential to add value.

Shares of Activision gained $1.11, or 4 percent, to $28.81 in premarket trading. On Thursday, the stock added 21 cents to finish at $27.70.

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