Marvel shares advance after RBC upgrades

Shares of Marvel Entertainment Inc. rose sharply Tuesday after an RBC Capital Markets analyst upgraded the company, predicting steady gains for the stock following its summer blockbuster "The Incredible Hulk."

In a note to investors Tuesday, analyst David Bank raised Marvel _ which licenses comic book characters for films and consumer products _ to "Outperform" from "Sector Perform." The stock rose $1.77, or 5.3 percent, to $34.91 in afternoon trading.

Bank said that while he sees no specific catalysts driving Marvel shares over the next 18 months, he expects smooth sailing for the stock now that Hulk _ which has grossed more than $97 million since its release two weeks ago _ has proven itself a successful film.

"With Hulk behind Marvel, the next 18 months are a process of reaping what the company has sown and preparing for next two releases in 2010," he said.

Marvel has said it plans to release "Iron Man 2" and "Thor" in 2010, and will release "The Avengers" in 2011.

Bank boosted his price target to $43 from $37, implying he expects shares to gain nearly 30 percent over Monday's close of $33.16.

Shares of Marvel have traded between $21.21 and $37.41 in the last 52 weeks, and are up 24 percent year-to-date.