Piper Jaffray Reports Perfect World Pipeline Looks Promising

According to Piper Jaffray, Perfect World PWRD pipeline looks promising. Piper Jaffray said that it continues to recommend PWRD shares on the heels of company's impressive 1Q results, which handily beat estimates and Street consensus. “1Q revenue came in at $110.1mil, above our estimate of $98.5mil, mainly due to higher than expected online game revenue of $98.7mil (PJC estimate: $89.5mil). EPS of $0.76 beat our $0.44 estimate (Street: $0.55) due to higher revenue and lower-than-expected marketing spend. 2Q revenue guidance of $104.6mil-$110mil (Rmb685mil-Rmb721mil) is above our $103.1mil estimate and Street consensus of $101.3mil. We rate PWRD Overweight. Our price target is $29 (11.2x CY11E EPS plus cash).” Perfect World closed yesterday at $23.95.