Chinese Internet stocks mostly fell Wednesday along with the overall market, though analysts spoke positively about several companies, including Sohu.com Inc. and Perfect World Co.
Shares of Beijing-based Internet portal operator Sohu declined 59 cents to $49.03.
In a note to clients, Sterne Agee analyst James Lee reiterated his "Buy" rating and $60 price target for the stock, saying recent checks of its online game "Tian Long Ba Bu" imply the game's popularity has risen since an expansion pack launched last week.
"We remain confident that Sohu will likely beat its first-quarter 2008 guidance given the strong server check results from 'TLBB,' " he said.
Lee raised his first-quarter revenue and earnings-per-share estimates for the company.
Shares of Shanghai-based competitor Sina Corp. fell 52 cents to $37.10.
Meanwhile, American Depositary Shares of online gaming company Perfect World declined 40 cents to $25.18.
Brean Murray Carret & Co. analyst Andrey Glukhov reiterated the stock as his top pick in China games coverage for 2008, saying he is optimistic about the company's prospects due to momentum he sees across its gaming portfolio.
"We note that the company continues to grow server count across all its games and both 'Zhu Xian' and 'Chi Bi' are currently in the top-10 games by page views, suggesting a healthy, established game community," he said.
ADS of competitor Shanda Interactive Entertainment rose 39 cents to $29.16.
In his note, Glukhov said the stock looks oversold, which "creates a compelling buying opportunity."
"Though admittedly Shanda lost some of its sizzle as its blockbuster launches have been delayed, we believe one should not discount the strength of the company's marketing and execution machine," he said.
Shanghai-based online gaming company The9 Ltd.'s ADS fell 87 cents, or 4.4 percent, to $18.88. The9 operates the "World of Warcraft" online game in China, among other games.
Elsewhere in the sector, ADS of Beijing-based online search engine operator Baidu.com Inc. fell $8.70, or 2.9 percent, to $287.25.
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