Deutsche Bank maintains grand game with rating target 4 USD

News and technology information Beijing time August 30, Deutsche Bank has issued an investment report, to maintain the grand game stock "hold" rating, the target price set to 4.04 U.S. dollars.

The following is a summary of the contents of the report:

The dismal third-quarter results suggest that the core game of Shanda is aging faster than we had expected. While the content updates to be introduced in the next few quarters will be to some extent attractive to users, we still believe that the "Blood Legend 2" and "Legendary World" in the near future will gradually lose users.

Second quarter results

Based on non-US general accounting standards, the earnings per share of the Shanda games in the second quarter were 3% higher than our forecast and 2% higher than the average industry forecast, mainly because of lower operating costs than expected. The revenue is RMB 1.131 billion, which is 3% lower than the average expectation of us and the industry. NET game revenue is RMB 1.04 billion yuan.

Management changes will have a negative impact on the near future

The Grand game appoints Zhang as the new CEO, and former CEO Tan has resigned. We believe that Tan's departure will have a negative impact: 1 may lead to operational disruption in the short term; 2 The instability of management highlights the cultural differences between founders and professional managers.

Valuation

We maintain the "hold" rating of the Shanda game stock, setting the target price at $4.04.