UPDATE: Citigroup Initiates Shanda Games at Neutral with $4.20 PT on 2h Monetization Challenges

Citigroup initiated its coverage on Shanda Games

with a Neutral rating (High Risk) and a price target of $4.20. Citigroup commented, "GAME is due to launch Age of Wushu, RIFT, and World of Zero in 2Q and 3Q, and management anticipates the new games to drive both user traffic and ARPU in 2H12. We are cautious on the 2012 revenue contribution from the new games due to a 1-2-quarter monetization delay and the fierce market competition." Shanda Games closed at $3.44 on Monday.