Goldman Sachs maintains a neutral rating and lowered its target price to 23 dollars

Beijing Time July 29 Evening News, Goldman Sachs published a study today to maintain a "neutral" rating of Nasdaq:cyou shares, and the target share price cut to 23 U.S. dollars.

The following is the full report:

Earnings points

The tour released a weaker-than-expected revenue forecast for the third quarter of 2014. In the second quarter of 2014, the total revenue was 178 million U.S. dollars, down 3%, higher than expected and Bloomberg statistics analysts average expected to lower 4% and 5% respectively. Not according to the United States General accounting standards, ads per share revenue of 0.04 U.S. dollars, better than expected. This is mainly due to the control of expenditure. Management estimates that revenue for the third quarter of 2014 will be 186 million to 192 million U.S. dollars, with a median growth of 3% per cent year-on-year, but higher expectations and average analyst expectations are 6% lower.

How to operate a swim stock

In the earnings conference call, the tour will be the performance of the online gaming business revenue due to the "Tianlong eight" latest information film weak performance. The game has contributed more than 60% to the cruise revenue. The new data cut down the difficulty of the game, leading to a decline in virtual goods transactions among senior players.

The tour management also reported a larger overlap between desktop and mobile gamers. Mobile role-playing games are rapidly attracting users, weakening the market's demand for similar desktop games, such as the Tianlong eight. To remain competitive, the company is investing in the development of a new mobile version of Tianlong eight. More details on the project will be announced by the end of 2014 to early 2015.

In addition, tour management reiterated that it would spend money by introducing new content for 17173 of media and mobile apps, and seeking strategic acquisitions to promote the platform business. In July this year, Mobotap, a developer of the Dolphin Browser, reached an investment agreement that would buy 51% of the company's shares.

We will dip from 2014 to 2016 earnings per share of 0.2 to 1.3 U.S. dollars, and the 18-month target share price from 24.2 U.S. dollars to 23 U.S. dollars to reflect weak revenue data. The target share price is equivalent to 0.5 times times the growth rate of the market, and the annual compound growth of earnings per share from 2014 to 2017 is 15%. We maintain a "neutral" rating on the swimming stock.

Important uncertainties: The maturity of existing games, the performance of new games. (D-Gold)