Analyst Arvind Bhatia says he believes the weekend results of the film reduces headline risk for Marvel Enterprises (MVL
). He notes Marvel receives 2%-7% royalty rate for movies. To put domestic box office numbers in perspective, he says "XMen" generated $54 million on its opening weekend, and eventually made $157 million; "Hulk" did $62 million, and finished at $132 million; and "Spider-Man 2" grossed $88 million, and finished at $373 million.
Bhatia notes channel checks prior to the movie's release indicated that toys and video games were selling in-line to slightly above expectations. He reiterates a strong buy opinion and $27 price target for Marvel shares.