Goldman Cuts THQ, Electronic Arts Ratings
Goldman Sachs removed THQ (THQI ) from its recommended list, and now rates the stock as market peform. Goldman also downgraded Electronic Arts (ERTS ) and Activision (ATVI ) to market perfrom from market outperform.
Analyst Christopher DeBiase says THQ's 2003 outlook is more cautious than current expectations, but is not out of line with his thinking of late for entertainment software makers. DeBiase notes he previously cited storm clouds on the industry's horizon, and predicted 2003 industry growth rates could come down to roughly 10% due to secular strength abating due to consumer spending trends as the console cycle starts to peak.