Goldman Sachs Downgrades Changyou.com (CYOU) to Neutral

Goldman Sachs downgraded Changyou.com (NASDAQ: CYOU) from Buy to Neutral with a price target of $28 (down from $45) following Q4 results which showed online game revenue grew 6% sequentially and Q1 was guided to be flattish.

The firm notes investments are weighing on margins.

Goldman lowered 2012/13E/14E EPS estimates by 15%/21%/21%, on lower online game revenues, but higher product development costs on more aggressive headcount additions.

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

Shares of Changyou.com closed at $25.31 yesterday, with a 52 week range of $20.71-$52.00.

---

Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!

You May Also Be Interested In

• Goldman Sachs Boosts Target on Williams-Sonoma (WSM) On Signs of Stabilization
• UBS Raises Price Target and Estimates on Williams-Sonoma (WSM); Positive Momentum Is Beginning To Pick Up
• UBS Maintains a 'Buy' on Ralph Lauren (RL); Taking A More Conservative Approach

Create E-mail Alert Related Categories

Analyst EPS Change, Analyst EPS View, Analyst PT Change, Downgrades

Related Entities

Goldman Sachs

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?

Follow StreetInsider.com On Twitter