Shanda Interactive Entertainment initiated with "buy"

10/09/06 - American Technology Research

NEW YORK, October 9 (newratings.com) - Analyst Paul Jon McNealy of American Technology Research initiates coverage of Shanda Interactive Entertainment Ltd (SNDA) with a "buy" rating. The target price is set to $20.

In a research note published on October 6, the analyst mentions that Shanda Interactive Entertainment’s share price has been under significant pressure due to the transformation in the company’s business model to the pay-for-game-items using points cards. The company’s share price did not respond to better-than-expected results in the latest quarter, the analyst adds. Shanda Interactive Entertainment is currently focusing on expanding its user base and increasing the average revenue per user on its MMORPG and casual games, American Technology Research says.