S&P Equity Research Downgrades Shanda Interactive Entertainment From Sell to Strong Sell

October 07 00:00 2011

NEW YORK, October 7 (RainbowNewsLine.com) – Analyst Scott Kessler of S&P Equity Research has downgraded the shares of Shanda Interactive Entertainment from SELL to STRONG SELL (NASDAQ: SNDA). The target price is set to $31.

Analyst Scott Kessler, in a research note published yesterday mentions that SNDA rose about 21% from its low reached two days back. The analyst believes that SNDA is surrounded by various macroeconomic and microeconomic challenges, and believe it to be the best opportunity to sell. Due to uncertainty of pending IPO’s specially the one proposed by SNDA subsidiary Cloudary caused by Chinese economy and its regulations regarding Chinese company stock listings in US. In addition to this, the analyst is concerned over recent inconsistent executions, non-core expenses, and revenue concentrations.