Deutsche Bank Lowers THQ Price Target by 36% (THQI)

Deutsche Bank maintained its Hold rating for THQ Inc. THQI but lowered the price target to $4.50 from $7.00. THQ is a publisher of video games. Analysts Jeetil Patel, Herman Leung, and Matt Chesler said, "Our estimates are adjusted reflecting our tempered view of the video game software industry, lower than expected sales of UFC, outlook for THQ's franchises and the recent strength of the US dollar." Deutsche Bank thinks FY12 outlook is stronger, led by Saints Row, Darksiders and follow through sales of its UFC and WWE franchises. The new $4.50 price target is a sum of the parts model based on a 14x multiple on FY12 EPS of $0.10, $2.70 in cash, and $0.39 per share in NOL value.