Investment banks bullish on big game, higher revenue forecasts

Sina Science and technology news Beijing time, August 24 night, Shanda Games (Nasdaq:game) after the second quarter earnings, thinkequity, Piper Jaffray and Oppenheimer and other investment banks have published research reports. The following is a summary of the contents of the report: ThinkEquity: We think that the performance of Shanda's games is strong, expected to be sound, and with optimistic prospects, we give the stock a "buy" rating. Shanda's second-quarter results were again strong, although earnings per share were 1 cents lower than analysts had expected, but this was mainly affected by other business receipts, and the company's third-quarter revenue forecasts also exceeded analysts ' forecasts.　　The company's game "Blood legend" performance is stable, other new games are also praised by the players. The company also has a solid new product plan that can reduce the reliance on a handful of flagship games for corporate revenues.　　We believe that Shanda games can achieve about 25% of income growth, is a good investment choice. Piper Jaffray: We maintain a "neutral" rating on the Shanda game stock and cut the target price from 6.50 to $5. We remain on the sidelines for the unit, for the following reasons: 1 The company's core gaming products have been in operation for years and the performance indicators for the next quarter may be disappointing. 2 The introduction of new games will increase the company's marketing costs, while in social/web/mobile game development will also generate investment spending, in the short term this will increase the company's profit margin pressure.　　However, once the company's new games show the potential for sustainable success, we will change our view of the unit. Oppenheimer: Shanda Games posted net income of 204 million dollars in the second quarter, and our expected value was $199 million trillion, and analysts ' general expectation was 200 million dollars. In the constant exchange rate of the quarterly income growth of 19% year-on-year growth of 5%. Each U.S. depository Voucher (ADS), based on US GAAP, yields $0.17 trillion, in line with our expectations and analysts ' general expectations. Shanda Game forecast The third quarter income will grow 2% to 4%, the operating profit margin basically flat.　　Although the game product "star change" performance appears to be lower than previously expected, but the 2012-year new product plan is still sound. We have raised our revenue forecasts for the company, mainly reflecting the appreciation of the renminbi, while maintaining our earnings forecasts for each share of the company. While we believe that Shanda's current valuations have some appeal, the company lacks profit drivers and has limited space for short-term stock prices. Leisurely）