GOLDMAN SACHS TO MAINTAIN A "SELL" RATING ON SHANDA

AsiaInfo Services
06-03-2011
Goldman Sachs to Maintain a "Sell" Rating on Shanda

BEIJING, Jun 03, 2011 (SinoCast Daily Business Beat via COMTEX) -- Wall Street investment bank Goldman Sachs released its investment report on June 2, which shows that it will maintain a "sell" rating on Shanda Games Limited (NASDAQ: GAME), and has adjusted up the target share price from USD 38 to USD 41 within 12 months.

Based upon the GAAP (General Accepted Accounting Principles), in the first quarter of 2011, diluted earning per share of Shanda Games was USD 0.36, slipping by 23% over last quarter, and dropping by 40% year on year; operating revenue was CNY 1.63 billion, increasing by 7% over the previous quarter, and growing by 25%, year on year.

First-quarter performance of Shanda is higher than the expected actually. Operating revenue of Shanda Online was CNY 301 million, a quarter on quarter growth of 12%, and year on year growth of 19%. Gross profit margin of Shanda dropped by 2.2 percentage points from the previous quarter to 58.3% during the reporting quarter; and the operating profit margin was 12%, based upon the GAAP.

Source: www.sina.com.cn (June 03, 2011)

KEYWORD: BEIJING INDUSTRY KEYWORD: Internet & Online Services & Media SUBJECT CODE: Internet & Online Services
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