Market Overview

UPDATE: Bank of America Raises PT on Perfect World Ahead of New Game Launches


In a report published Wednesday, Bank of America analyst Eddie Leung reiterated a Buy rating on Perfect World (NASDAQ: PWRD), and raised the price target from $12.20 to $14.00.

In the report, Bank of America noted, “After continued revenue decline on maturing old games and shortage of new game launches in the past 12-18 months, co finally expects a rebound in sales in 2Q13, reversing a downtrend in past three quarters on new games: Neverwinter in the US/Europe, Saint Seiya in China and several web games and mobile games. Also, co. has managed to keep the expenses under control (OPM at 21%), while waiting for new game launches. And thus, we are revising up our 2013/14 sales forecast by 2.7 / 3.3%, and net income by 7.8 / 8.9% respectively. Hence our PO is revised up to $14, based on net cash of US$8.0 and 6x of 13E EPS of US$0.96, implying PEG 1.0 of 13-14 EPS growth. With over half of its market cap in net cash, stock is trading at 5x ex-cash PE, we see limited downside.”

Perfect World closed on Tuesday at $12.94.

Latest Ratings for PWRD

Nov 2014Pacific CrestDowngradesOutperformSector Perform
Aug 2014Morgan StanleyUpgradesEqual-WeightOverweight
Jul 2014CitigroupInitiates Coverage onNeutral

View More Analyst Ratings for PWRD
View the Latest Analyst Ratings


Related Articles (PWRD)

View Comments and Join the Discussion!

Posted-In: Bank of America Eddie LeungAnalyst Color Price Target Analyst Ratings

Latest Ratings

ZNTLWedbushInitiates Coverage On65.0
SPNSJefferiesInitiates Coverage On39.0
PENNCredit SuisseInitiates Coverage On128.0
GTLSPiper SandlerInitiates Coverage On160.0
GBTPiper SandlerDowngrades50.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at