Jaffray maintain Grand game Neutral rating target share price 4 USD

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Beijing Time August 29 Evening News, the U.S. investment Bank Jaffray (PiperJaffray) issued an investment report today to maintain the "neutral" rating of Shanda gaming stock (Nasdaq:game) while maintaining a 4 dollar target share price unchanged.

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

Shanda Games second-quarter results exceeded our expectations. MMO gaming revenues have grown moderately, with mobile gaming revenues falling slightly on the chain. Third-quarter guidance revenue is expected to be lower than we and Wall Street expectations.

Second quarter results: Revenue for 175.6 million U.S. dollars, the chain growth of 1.5%, slightly higher than we expected 173.2 million U.S. dollars and Wall Street expected 174.7 million dollars. Diluted earnings per share of 0.22 dollars, higher than we expected 0.20 dollars.

Third-quarter results expected: Shanda games expect revenues to reach $180.9 million to $182.6 million trillion, below our projected $186.3 million trillion and Wall Street's expected $183.2 million trillion.

Core MMO performance is poor: in the second quarter, the number of MMO monthly subscribers was 3.2 million, down 5.2% in the chain. Average revenue per user (ARPU) for 98 yuan, the chain growth of 4.7%.

Mobile games: The second quarter of the mobile game revenue for 16.5 million U.S. dollars, accounting for the total revenue of 9%. At present, the Grand game has not yet launched a new mobile game has 36. The company expects mobile gaming revenues to account for 50% of total revenue over the next 3 to 5 years.

New games to watch: MMO, 0 World, the light of the Earth (Dungeon Striker) and Final Fantasy 14 (Final Fantasy XIV), mobile gaming, "Million King Arthur" (Technologists Arthur), Guardian Cross and the hell of the Lord.

Valuation: We continue to maintain the "neutral" rating of the Shanda game stock while maintaining a 4 dollar target share price unchanged