Oppenheimer Holdings Reiterates Perform Rating on Perfect World

In a report published Friday, Oppenheimer Holdings reiterated its Perform rating on Perfect World Co., Ltd.

. Oppenheimer noted, “PWRD reported mixed 3Q results with revenue coming in better than expected on contributions from Torchlight 2 while earnings missed our and consensus estimates on higher expenses. Margins contracted y/y on higher R&D and sales and marketing expenses related to new game and expansion pack releases. PWRD guided to 4Q revenue of $105.2-110.7M, below consensus estimate of $111.6M. We're lowering our forward estimates to reflect lower growth and margin assumptions. While the stock may remain range-bounded in the near term as PWRD navigates the gap of its product life cycle, revenue growth should resume in 2013 given its relatively robust games pipeline.” Perfect World Co., Ltd. closed on Wednesday at $10.58.