$斯凯(MOBI)$ Rosenblatt Sees Limited Risk in Sky-mobi (MOBI) Post Q1

May 26, 2015 11:53 AM
Rosenblatt analyst Jun Zhang reiterated a Buy rating and $12 price target on Sky-mobi Limited (NASDAQ: MOBI) following earnings this morning,

The analyst notes Sky-Mobi reported Q1 and beat their own guidance by 10%, driven by strong smartphone mobile game publishing. Monthly Active User increased from 33.6 mln in Q414 to 37.7 mln in Q115.

"We think that the China Telco operators’ billing suspension will affect Q2 revenue, but the billing issue is a temporary situation that will go away in the 2nd half of this year,"Zhang siad. "We expected this impact from the billing policy."

In addition, the management team announced an extension of their $20 mln buy-back program and mentioned increasing the return to investors through the monetization of some of their early investments.

"Based on the strong cash balance and strong growth of revenue and EPS, we do not think there is much downside risk," the analyst concluded.

For an analyst ratings summary and ratings history on Sky-mobi Limited click here. For more ratings news on Sky-mobi Limited click here.

Shares of Sky-mobi Limited closed at $4.45 yesterday.