Citi analysts Muzhi Li, Ravi Sarathy, and Gregory Zhao liked Shanda’s mobile game portfolio and maintained their Buy rating and target price at $4.75. Shanda gained 3.9% yesterday and last traded at $4.55.
This buy rating barely has any upside left and the recommendation reads lukewarm, however. The analysts question Shanda’s mobile game platform strategy. Shanda tries to sell its games through its own app store, which Citi thinks is doomed, because the company is too small.