UPDATE: Pacific Crest Securities Reiterates Outperform Rating, Lowers PT on Perfect World Co. Ltd. on Encouraging Mobile Gaming Progress

In a report published Tuesday, Pacific Crest Securities analyst Cheng Cheng reiterated an Outperform rating on

, 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.