iDreamSky (DSKY) PT Lifted at Rosenblatt on Strong Q1

Rosenblatt analyst Jun Zhang reiterated a Buy rating and boosted his price target on iDreamSky (NASDAQ: DSKY) to $12.00 (from $11.00) on strong Q1 results and solid gaming pipeline.

Zhang highlighted:

• iDreamsky (DSKY: Buy) reported 1Q15 results, which beat street revenue and EPS consensus by around 11%. The company provided in-line guidance even with China Mobile tightening up on mobile game billing regulation.
• We are positive on DSKY’s efforts to switch its focus on hard-core games and the iOS platform instead of heavily relying on casual gaming and the Android platform. The first two iOS games launched in May are already ranked among the top 30 games on the iOS platform and revenue from these two games alone surpassed $ 3 million last month.
• We are reiterating our Buy rating on DSKY. We are increasing our EPS estimates from $0.94 to $0.97 for full year 2015 after their 1Q15 EPS beat by 2 cents, and we are increasing our price target from $11 to $12 based on 12x our 2015 EPS estimate.

For an analyst ratings summary and ratings history on iDreamSky click here. For more ratings news on iDreamSky click here.

Shares of iDreamSky closed at $10.98 yesterday.

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