Pacific Crown license yy run to win the market target price reduced to 93 U.S. dollars

Pacific Crest, the Pacific crown of the US investment Bank, released its investment report today, reiterating the "outperform" rating of the era stock (NASDAQ:YY), which lowered its target share price from $105 to $93, the Beijing time May 7 Evening News.

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

First quarter results: In the first half of the fiscal year 2014, the gathering time revenue of 107.2 million U.S. dollars, higher than we expected 104.3 million U.S. dollars. Diluted earnings per share of 0.55 dollars, higher than we expected 0.49 dollars. Revenue growth has benefited mainly from the strong performance of the music business.

Second-quarter results expected: The gathering time forecast, the second quarter revenue will reach 750 million yuan (median), an increase of about 83%. We expect that the music business will continue to drive the gathering era of revenue growth. In addition, we expect the advertising business to rebound in the second quarter. During the 2014 fiscal year, advertising revenues are expected to be flat over the same period.

Business Fundamentals are strong: We believe that the business fundamentals of the first fiscal season are still strong, especially as the music business grows rapidly. As for the recent government content control, we think that the market is a little too much.

Valuation: We reaffirm the "outperform" rating of the era stock, bringing the target share price from $105 to $93.