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UPDATE: Pacific Crest Securities Reiterates On Perfect World Co. Ltd. On Encouraging Mobile Gaming Progress

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In a report published Tuesday, Pacific Crest Securities analyst Cheng Cheng reiterated an Outperform rating on Perfect World Co. Ltd. (NASDAQ: PWRD), but lowered the price target from $28.00 to $24.00.

In the report, Pacific Crest Securities noted, “On a constant-currency basis, Q1 revenue of 891 million RMB was better than our estimate of 864 million RMB. After currency fluctuations, revenue of $143.3 was relatively in line with our estimate of $142.7 million. Mobile games contributed over 15% of total revenue in Q1. However, due to lower gross margin on mobile games, overall gross margin declined 150 basis points q/q versus Q4. We expect a sharp ramp of mobile game revenue in Q3 and Q4 this year and anticipate further gross-margin declines. EPS of $0.64 was better than our estimate of $0.57.”

Perfect World Co. Ltd. closed on Monday at $18.34.

Latest Ratings for PWRD

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

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Posted-In: Cheng Cheng Pacific Crest SecuritiesAnalyst Color Price Target Analyst Ratings


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