CICC Reiterates Hold on Shanda Games on Potential 2H Recovery

CICC maintains its Hold rating and $4.40 price target on Shanda Games (NASDAQ: GAME) following in-line results for Q1.

CICC notes, "GAME has scheduled major upgrades with new game design engines and trend-fitting cross-server features for Mir II and Woool in 2H12, which we believe will reinvigorate the two long-running titles. We also see additional revenue growth in 2H12 from highly anticipated new games like RIFT and World Zero. Moreover, new expansion packages with expanded maps and gameplay for Dragon Nest are scheduled for release in 3Q12 and six new web games and several mobile games with elements from successful client games are in the pipeline, which could allow meaningful revenue recovery in 2H12. On the cost side, we believe that GAME will continue to have good control over operational expenses in the coming quarters."

GAME closed at $4.05 a share yesterday.