UPDATE: Piper Jaffray Raises PT on Shanda Interactive to $42

Piper Jaffray is out with its report today on Shanda Interactive SNDA, raising its PT from $41.50 to $42. In a note to clients, Piper Jaffray writes, "Shanda reported mixed 1Q results with revenue exceeding expectations while GAAP EPS disappointed. While we acknowledge Shanda's efforts to enhance its integrated service platform and incubate promising business opportunities, we continue to lack visibility on forward earnings and expect the company's expansion efforts beyond GAME will continue to require high levels of investment with little return in the intermediate term. We recommend investors avoid the shares until earnings visibility improves. We rate SNDA Neutral and are raising our PT from $41.50 from $42, based on our sum-of-the-parts valuation methodology." Shares of SNDA closed Thursday at $41.19, down 3.20% from Wednesday's close.