Deutsche Bank Downgrades Shanda Games (GAME) to Hold; Cautious On Rebound as Gamer Interest Declines

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Deutsche Bank downgraded Shanda Games (NASDAQ: GAME) from Buy to Hold with a price target of $4.60 (from $6.41).

Deutsche analyst, said, "Shanda Games plans to launch major expansion packs (EP) of its legacy games (Mir 2 and Woool) in 3Q12. The co guides a weak 15-20% sequential top-line decline for 2Q12 as monetization of the two games (50% of rev in 1Q12) slows. We view EP as only a partial remedy for usage loss. Earnings visibility over the next 12 months decreases on declining usage and major updates. In addition, we view recent expansion in value of related party transactions with parentco Shanda Interactive (Nasdaq: SNDA) as introducing possible conflicts between parentco and public (minority) investors."

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

Shares of Shanda Games closed at $4.05 yesterday, with a 52 week range of $3.46-$6.93.

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