UPDATE: Bank of America Upgrades Giant Interactive Group to Buy on Divided Policy
Bank of America upgraded Giant Interactive Group (NYSE: GA) from Neutral to Buy and raised the price objective from $6.80 to $7.20.
Bank of America said, "We upgrade Giant to Buy as it announced an unexpected dividend policy in 4Q12 result, and continues to see growth of its game revenues (up 16% YoY and 5% QoQ in 4Q12). Co announced regular dividends to be paid going forward, including US$0.42 per ADS, or ~7% of last closing price, payable to shareholders of record at the close of trading on 20 May 13. Co is among the first to declare regular dividends among game companies, which tend to be more on special dividend basis. This should reduce investor concern on use of cash and enhance investor returns."
Giant Interactive Group closed at $6.19 on Tuesday.
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