Marvel shares climb after JPMorgan upgrade

Shares of Marvel Entertainment Inc. climbed along with the broader market Wednesday as JPMorgan upgraded the stock, predicting stronger-than-expected earnings for the company next year.

JPMorgan analyst Vasily Karasyov raised Marvel to "Overweight" from "Neutral," and projected 2010 earnings per share of $2.27. The average estimate of analysts is $2.04, according to Thomson Reuters.

Shares jumped $2.22, or 6.2 percent, to $37.81 in afternoon trading.

"We expect the company to continue to generate high margin revenue from exploitation of its library of characters," Karasyov said in a research note.

Feature films including "The Incredible Hulk" and "Iron Man" as well has healthy licensing revenue have helped the New York company fare relatively well through the economic downturn. First-quarter results, reported in May, were above Wall Street expectations, with earnings down slightly but revenue up 75 percent year-over-year.

Karasyov said "Iron Man 2," set for release next May and starring Robert Downey Jr. and Mickey Rourke, should help drive better-than-expected profits next year.