UPDATE: Piper Jaffray Reiterates Neutral, $4 PT on Shanda Games Limited; Waiting for Monetization
Piper Jaffray reiterated its Neutral rating and $4 price target on Shanda Games Limited (NASDAQ: GAME) following results from the company's second quarter.
Piper Jaffray noted, "We are lowering our estimates and maintaining our Neutral rating, awaiting 1) new games to demonstrate potential for prolonged blockbuster success; 2) recovery of MIR 2 and Woool. Our price target remains $4, based on 4x CY13E EPS + net cash/share (previously 5x CY12E EPS + net cash/share), a discount to our earnings growth rate assumption given the uncertainty surrounding the performance of MIR 2 and Woool."
Shanda Games Limited closed at $3.33 on Friday.
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