Deutsche Bank issued a research note Tuesday on 500.com Ltd. WBAI with a Q3 2014 preview and information on a new payout impact. The firm maintained a Buy rating.
Analysts led by Alan Hellawell III noted that the "industry payout ratio raise (from 69 percent to 73 percent) of single football/basketball match products will be trialed from 21 Oct through year-end according to the MoF. We expect a gradual weekly roll-out across fixed odds single matches during this period; with limits to GMV that enjoy the increased pay-out per match (applied both online and offline)."
Hellawell spoke with "WBAI and its peers, and believe company fundamentals remain strong. New pipeline products for instance should trigger further user growth in the future."
The note expected the company "to deliver RMB2.24b in 3Q GMV (+204 percent YoY), net revenue of RMB185m (+166 percent) and non-GAAP NP of RMB78m (+474 percent) on World Cup activity in July."
500.com Ltd. closed at $30.74 on Wednesday, down 1.54 percent.
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