On Monday, Jefferies adjusted its outlook on Perfect World Co Ltd (002624:CH) stock, reducing the price target to RMB11.90 from the previous RMB13.70. Despite the price target adjustment, the firm maintained its Buy rating on the stock.
Perfect World, known for its involvement in the gaming industry, reported preliminary earnings in January 2024 and has released its earnings results today. The company has been in the spotlight for its financial performance and future prospects in the gaming sector.
Looking ahead into 2024, Jefferies anticipates the launch of several new games from Perfect World, spanning various genres, with a stronger focus on the second half of the year compared to the first. This release strategy suggests that the company expects a more significant contribution to its financial results towards the end of the year.
The firm also noted that Perfect World has made enhancements to its organizational structure, which are expected to optimize costs. The emphasis is placed on high-quality projects, indicating a strategic approach to improving efficiency and potentially increasing profitability.
Jefferies' commentary on the company's outlook reflects a positive stance on Perfect World's future, emphasizing the potential for growth and improvement. "We consider 2024 a backend loaded year for PWRD. Maintain Buy," the firm stated, signaling confidence in the company's direction and forthcoming projects.
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