Deutsche Bank Removes PT on THQ After 3Q Pre-announcement

Deutsche Bank has published a research report on THQ

after the company pre-announced its 3Q earnings miss. In the report, Deutsche Bank writes, "THQ preannounced F3Q sales would come in below mgmt's original guidance range of $510-$550mn by 25%, due to a weak launch of the uDraw GameTablet on HD console platforms, but noted that the WWE and Saints Row software titles are performing at or better than mgmt expectations. It is hard to imagine that uDraw units missed by over 2.5mn, implying other products were weak also. We reduce our already-below guidance estimate for F3Q revs and profitability as outlined below. Hold as we have a neutral view on the stock." Deutsche Bank maintains its Hold rating and has removed its $2.05 price target on THQ, which is currently trading down $0.42 from yesterday's $1.46 closing price.