Analyst: Guitar Hero II For Xbox 360 Selling Strongly

Analyst Bill Kreher from AG Edwards has revealed that 89 out of 100 GameStop stores that his firm called were completely sold out of Guitar Hero II for the Xbox 360, with further positive words for Activision due to Spiderman 3's imminent release. According to a research note from Kreher: "Guitar Hero II for the Xbox 360 is enjoying strong momentum with demand outstripping supply." He then commented that, even though the game (which is bundled with one controller) costs $89.99, and the extra guitar controller brings the average price close to $150: "In our survey of 100 GameStops, 89 were completely out of Guitar Hero II and none had extra guitar (X-Plorer) controllers. Respondents with Guitar Hero II in stock had only limited quantities, with 15 total units available out of 100 stores." Kreher's conclusion? "We believe Activision is poised for strong market share gains in first half fiscal '08 due to strength of Guitar Hero II for the Xbox 360, the highly anticipated release of Spiderman 3 in May, and contribution from other early 1H08 releases such as Shrek the Third and Transformers." Thus, AG Edwards is raising its fiscal 2008 and 2009 estimates on the major publisher, re-affirming its BUY rating, and raising its 12-18 month share price goal $24 from $23. Activision is currently trading at $19.58 in early share activity, up slightly.