Citigroup: Wait For PWRD To Deliver Sustainable Gamer Traction

Analysts at Citigroup reiterate their "buy" rating on Perfect World PWRD, while reducing their estimates for the company. The target price for PWRD has been reduced from $44 to $35. Citigroup mentions, “We believe investors need to wait for evidence that their upcoming two new game releases, Forsaken World and Dragon Excalibur, to deliver sustainable gamer traction before warming up to potential improving fundamentals.” Citigroup has lowered its non-GAAP EPADS for 2010 from $0.76 to US$0.69 due to: “1) low traction from expansion packs effect on existing games such as Fantasy Zhuxian and Zhuxian II, 2) declining user trend in BOI and 3) lack of new game launches during the quarter, while 4) higher-than-expected operating expenses due to more R&D hiring and consolidation of C&C Media and Runic games team as well as 5) higher S&M promotion and E3 expenses.” More Analyst Ratings here