Perfect World Gets Closer To Perfection After Morgan Stanley Upgrade
Shares of Perfect World (NASDAQ: PWRD), a Chinese mobile game developer, spiked higher following a mid-day upgrade from Morgan Stanley. The shares were raised from equal weight to overweight, with a concomitant price target increase from 19.70 to 30.00.
Morgan cited strong mobile game performance as a near-term catalyst, along with their expectation of increased guidance following Tuesday morning's earnings release. Longer-term, Morgan Stanley said that Perfect World should benefit from potential restructuring with higher efficiency.
According to Morgan Stanley, Perfect World is now the only mobile game developer in China other than Tencent (NASDAQ: TCEHY) that has three mobile games each grossing over Rmb30mn/month. They estimate mobile games will contribute ~30 percent of Perfect World's total revenue in in the third quarter of 2014 and said they believe it's now time for investors to take a new angle.
Shares of Perfect World are trading higher by 1.2 percent at 22.84.
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