Oppenheimer Has Outperform On Perfect World (PWRD)

Oppenheimer & Co. has an Outperform rating and a $34 price target on Perfect World Co., Ltd. PWRD. It previews PWRD's earnings in a research report. In a note to clients, Oppenheimer writes, "PWRD will host its 3Q earnings on 11/15 at 8pm EST. We expect 3Q gaming revenues to increase ~2% near mid-point of guidance, although total revenue growth may get a boost from Film/TV business. 3Q OM will trough to ~34% with investments in new expansion packs, China Joy, and a sequential decline in overseas licensing. With two highly anticipated games launching 4Q10, we expect 4Q revenue growth to accelerate to ~6-7% q/q, offset by rising S/M to promote new games. PWRD remains one of our top picks in China's online gaming sector given its solid track record, large/growing games pipeline, and strength in 3D/international games." Shares of PWRD lost $1.37 yesterday to close at $30.44, a loss of 4.3%.