UPDATE: Morgan Stanley Reiterates Overweight Rating, Lowers PT for Perfect World

In a report published earlier today, Morgan Stanley reiterated its Overweight rating for Perfect World Co., Ltd. PWRD, but lowered its price target from $18.40 to $16.70. Morgan Stanley went on to say “Despite a softer 2Q outlook, we believe Perfect World offers deep value, as it trades at only ~4x 2012e P/E, with net cash (post dividend) accounting for 55-60% of its market value. The stock offers a 5-7% recurring dividend yield. We are waiting for games launch in 2H, which may serve as catalysts.” Perfect World Co., Ltd. closed yesterday at $11.50.