UPDATE: Bank of America Merrill Lynch Reiterates Underperform Rating, Lowers PT on The9 Limited

In a report published Monday, Bank of America Merrill Lynch reiterated its Underperform rating on The9 Limited

, but slightly lowered its price target from $5.20 to $4.50. BofA Merrill Lynch noted, “As the company only reports on a biannual basis and hence doesn't release its 3Q12 results, we think we should provide an update on the progress of its launch schedule. The9's key game in the pipeline, Firefall, which is developed by its US studio Red5, is currently under beta testing in the US. Co has three weekends in Nov and Dec that it will invite a number of users to stress test the game and provide feedback. On the other hand, this implies limited revenue contribution from US in 4Q12 and our original expectation of a Chinese commercialization, (which is a more important milestone) in 2Q13 is likely too aggressive. We now model material US contribution in 1Q13, instead of 3Q12, and full commercialization in China in 3Q13 instead of previously expected 2Q13.” The9 Limited closed on Friday at $2.92.