Wednesday, September 19, 2007

Shanda Interactive (NASDAQ:SNDA): Piper upping tgt to $43

- Piper Jaffray is positive on Shanda Interactive (NASDAQ:SNDA) taking their tgt to $43 from $41 following their recent trip to China, which included several meetings with online gaming management teams and industry contacts. They believe Shanda is tracking ahead of expectations for the current quarter; and out year estimates are overly conservative. Furthermore the firm believes the company is well positioned to capture additional market share in the rapidly growing China online gaming sector due to improving portfolio, strong execution and increased user base. Firm now expects the online gaming sector to grow at least 40% during CY07 (up from 25%-30% previously) and 25%-30% during CY08. PJ expects the company to be a leading consolidator during this period of rapid industry growth. They continue to believe that Shanda is an excellent play on China.

PJ is increasing CY07 sales/EPS estimates from $309M and $1.65 to $311M and $1.66. In addition, they are taking up CY08 sales/EPS estimates from $370M and $1.85 to $388M and $1.95.

Notablecalls: I'm not sure but given what RBC's call did for BIDU, I suspect SNDA will see some interest following this one.

Note of caution: There is some buy interest in SNDA in the pre mkt but the stock is not responding too well. So be careful out there and adjust your risk accordingly.

7 comments:

fun said...

I would not be very bullish on SNDA today. SNDA has shown strength during last 2 days and I think this (not too mentionable target raise) is priced in. SNDA has performed as good as BIDU when you look at the 5 day chart.

notablecalls said...

Youre right.

SNDA's no fun for longs here :)

NC

parkerfinancial said...

I picked some up when it was down -3% or so, it seems to be holding up pretty well to the established trend line.

parkerfinancial said...

and... now i'm hurting.

newequity said...

Take your loss parker and live to trade another day.

kagame said...

Lets take a longer view here shall we? Shanda dropped from $36-$33 due to the skyline sale, and is still poised to break $40 in the short term. The stock has amazing fundamentals, growth, management, and is seeing a surge in upgrades.

kagame said...

POW!