Deutsche Bank Starts Changyou.com (CYOU) at Buy
- Donald Trump Sworn in as 45th U.S. President
- Wall Street ends higher as Trump becomes president
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Apple (AAPL) Sues Qualcomm (QCOM) Over Patent Royalties in Antitrust Case - Bloomberg
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
Deutsche Bank initiates coverage on Changyou.com (NASDAQ: CYOU) with a Buy rating and a price target of $31.70, implying upside of 29%. Analyst Han Joon Kim noted that Changyou.com will release a new mobile TLBB title through Tencent.
"We expect Changyou to reverse the slide in its business with the imminent launch of its new mobile game, Legacy TLBB. Between Tencent's track record of supporting successful mobile conversions of legacy PC titles for other companies and 75% of Changyou's market cap supported by cash and land value, we see a disproportionately high risk to the upside," said Kim.
The analyst added, "As we elaborate in our September 2016 FITT report, 'Fattening the long tail', we see room for continued growth in mobile gamers into 2017. We identify Changyou as a potentially winning returning entrant to mobile, winning over new (or dormant PC) users with a refreshed version of its core intellectual property, Tian Long Ba Bu (TLBB). With Tencent as its publisher for Legacy TLBB, we expect the title to launch in mid-4Q16. Tencent has helped other PCturned-mobile games launch successfully in China, including Shanda’s Legend of Mir 2 and Giant’s Zhengtu."
Shares of Changyou.com closed at $25.02 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- M&T Bank (MTB) PT Raised to $165 at FBR Capital Following 4Q Beat
- Union Pacific (UNP) PT Raised to $120 at Aegis Capital Following Solid 4Q
- Deutsche Bank Sees 'Encouraging' Short-Term Set-Up in Valeant (VRX)
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, New Coverage
Related EntitiesDeutsche Bank
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!