UPDATE: CCB International Upgrades Perfect World to Outperform

CCB International raises its rating on Perfect World (NASDAQ: PWRD) to Outperform from Neutral and increases its price target to $15.80 from $11.85 following a generous special cash dividend from the company.

CCB International notes, "Perfect World declared a generous special dividend of US$2.00/ADS, returning c.22% of its net cash as at end-2011 to shareholders. Moreover, the company intends to pay regular annual dividends going forward. We expect regular cash payouts to lower the market discount applied towards Perfect World's net cash balance, eventually resulting in potential upside for the share price."

PWRD closed at $12.55 a share on Friday.