Oppenheimer Reiterates Perform On Changyou Shares


Oppenheimer analyst Ella Ji reiterated a Perform rating on Changyou.com Limited (NASDAQ:CYOU). No price target was provided.

Ji noted, “CYOU delivered 3Q14 revenue of $180.8M, short of our est./low-end guidance by 4%/3% due to sluggish game revenue. However, non-GAAP EPS of $0.07 beat our $(0.06) est. and guidance of $(0.11) on savings from S&M spending. 4Q revenue guidance of $188M-$198M misses our est. of $201M on low game revenue, while no earnings guidance was provided at this time. CYOU spent nearly $200M more in S&M in the past 12 months, but revenue growth remains flattish. Resignation of CEO may add uncertainties to the company’s focus and strategies. While we expect top line to sequentially ramp up and margin appears to have bottomed, our updated 2015 EPS still points to an operating loss.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ella Ji has a total average return of 21.9% and a 55.0% success rate. Ji is ranked #411 out of 3358 analysts.

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