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Shanda Interactive reported Q2 2005 earnings results last night. Here are key extracts from Piper Jaffray analyst Safa Rashtchy's note to clients:

....We view 2Q05 for Shanda as a transition quarter: while the existing games are still doing well, no major new game was in the early stages or at the peak of its growth cycle to produce massive upside as was the case in the past quarter. This is not a cause for major concern, in our opinion, as these growth patterns come in cycle. With six new major games in the pipeline over the next two-three quarters, we believe Shanda will soon get back into the much higher growth levels we have seen from the company in the past, and that we are now seeing in NetEase (ticker: NTES).

....We maintain our Outperform rating but are lowering our price target from $59 to $53, using a 2006 EBITDA multiple of 20x instead of 22x, which is generally in line with the multiple we have used for price targets of comparable companies such as SINA and CTRP.

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Source: Sell-side reaction to Shanda's Q2 2005 earnings results (SNDA)