Piper Jaffray Upgrades The9 Limited (NCTY) to Buy
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Piper Jaffray upgrades The9 Limited (NASDAQ: NCTY) from Neutral to Buy and raises their price target from $26 to $31. The firm also raises their CY 08 EPS estimate from $1.65 to $1.80. Based on improved Worlds of Warcraft outlook, the firm increases their CY 09 EPS estimate from $1.98 to $2.10..
The firm said, “We are upgrading shares of NCTY to Buy based on improving visibility and confidence in business outlook. We think Activision-Blizzard will renew its Worlds of Warcraft (WoW) license with The9 in short order and spread new MMO games (i.e.: Starcraft) to new partners in China. We hear the next expansion set for Worlds of Warcraft - Wrath of the Lich King is progressing very well and the game is expected to be better than the last expansion set. Following the last expansion set, WoW peak concurrent users increased 50% during the following 12-months. We expect another strong boost to sales once Wrath of the Lich King is released."
Piper also highlighted that gaming trends in China continue to be healthy despite the earthquake. Also, NCTY’s product pipeline is improving with 6 new games expected within 18-months.
The9 Limited, through its subsidiaries, engages in the development and operation of online games, and Internet and Web site related businesses in the People's Republic of China.
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Comments
response to epac
speaking without research makes you sound like a fool
for real
have they ever been successful with another product outside of WOW ? the company is a train wreck waiting to happen, heaven forbid Blizzard pull WOW or its game over for the9
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to 2pac: nope
kalientador on Jun 29, 2008 12:23 AMof course not... 90% of their revenue comes from WoW. but, blizzard has no reason to go out side of the9... why would they? the9 would be crazy not to 'meet' anything that blizzard demands. the9 is like the outsourced manufacturing companies you typically see in china... can't survive without the exclusive business from state side customers. the company is operating at the pleasure of blizzard... blizzard's little bi***