2. Changyou.com (CYOU - Get Report) is an online game developer and operator in China engaged in the development, operation and licensing of its massively multiplayer online role-playing games (MMORPG). Besides, it has a leading in-house technology platform that includes advanced 2.5D and 3D graphics engine, a uniform game development platform and many other techniques.
Of the 19 analysts covering the stock, 89% recommend a buy and 11% advise a hold. The stock's average 12-month price target is $42.67, which is 68.2% higher than the current price, as per a Bloomberg consensus.
For the third quarter of 2011, CYOU reported total revenue of $119 million, up 39% from the same period a year ago and a sequential increase of 13% over the prior quarter. For the period, net profit to shareholders stood at $52.8 million, an increase of 17% over the same quarter a year ago.As per industry news, Changyou.com is planning to launch additional racing contests in Duke of Mount Deer as the game has attracted thousands of players from 136 groups of servers. Up ahead for 2011 fourth quarter, the company expects total revenue to be between $122 million and $125 million and net income of $58 million to $60 million.