UPDATE: Citigroup Initiates Buy, $5.80 PT on Giant Interactive Group; Growth Momentum Strong

Citigroup initiated its coverage on Giant Interactive Group GA with a Buy rating and a price target of $5.80 per share. Citigroup commented, "From just one game, Giant (GA) has evolved ZT Online into a series of games targeting different player profiles, garnering 4% of China's game market share in 2011. We are positive on the GA stock given ZT2's strong growth momentum (based on an innovative monetization model), GA's expansion to new game products such as web games and a 6.4% dividend yield. Our DCF-based TP of US$5.8 implies 2013E PER of 6.4x and 26% upside." Giant Interactive Group closed at $4.60 on Monday.