). In a note sent to clients, Citi writes, "Shanda's margins have been hit hard by the consolidation of Ku6, with operating margins shrinking from 27% in 1Q10 to 17% in 2Q10 and 11% in 3Q10. Given the huge costs associated with content investment in the video business, it is not clear when Ku6 will break even and hence margins are unlikely to rebound in the near term. But US$24 per share in cash, GAME's valuation and the existing share buyback program provide Shanda Interactive good downside support, in our view. We believe the stock will stay range-bound in the long term, unless strong positive or negative drivers emerge. Maintain Hold (2M) and adjust SOTP-based target price to US$45 from US$44." Shares of SNDA gained 13 cents yesterday to close at $40.70.