UPDATE: Bank of America Merrill Lynch Raises PO on Giant Interactive to $8.80 (GA)

Bank of America Merrill Lynch is out with its report today on Giant Interactive

, raising its PO to $8.80. In a note to clients, Bank of America Merrill Lynch writes, "We increase our 11E and 12E revenues by 7% and 8%, respectively, to reflect stable performance from the original ZT after the launch of ZT2. PO is up to US$8.8 (12x forward 12-month EPS of US$0.73) from US$7.7 as we rollover our forward 12-month EPS to include 1Q12 in our PE valuation. While company delivers solid performance on the ZT series, diversification is likely needed for the market to perceive it as a tier 1 platform." Bank of America Merrill Lynch maintains Underperform on GA. Shares of GA closed Thursday at $9.37.