Deutsche Bank upgraded Activision (ATVI) to buy from hold.
Analyst Jeetil Patel says his upgrade reflects a solid start to the June quarter, and improving visibility into the fiscal 2004 (Mar.) title lineup, as well as the potential for his estimates to prove conservative. He thinks the June quarter will be driven by Return to Castle Wolfenstein (consoles), and X2, whose movie generated $86 million in the U.S. over the opening weekend). Patel also thinks the return of Tony Hawk, DOOM 3, Pitfall Harry, Lemony Snickets, and recently announced titles from Valve Software could pave the way for growth in the back half of fiscal 2004. Patel ses 70 cents fiscal 2004 earnings per share, and raised his $14 target to $20.