Deutsche Bank Cuts Renren Inc (RENN) to Sell

August 16, 2013 12:45 PM EDT Send to a Friend
Get Alerts RENN Hot Sheet
Price: $2.88 +2.13%

Rating Summary:
    1 Buy, 7 Hold, 6 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 3 | Down: 17 | New: 2
Trade RENN Now!
Join SI Premium – FREE
Deutsche Bank downgraded Renren Inc (NYSE: RENN) from Hold to Sell with a price target of $2.40 (from $2.89). On Thursday afternoon, Renren reported Q2 revenue that fell short of expectations. Analyst Vivian Hao believes gaming pipeline delays dampen the company's outlook.

"Renren released disappointing 2Q results and guided a 3~7% YoY revs decline for 3Q (23% lower than the Street), quoting major delays in gaming pipeline for both online and mobile. Meanwhile, ad revs stagnated due to a shortage of inventory," said Hao. "Given a substantial slowdown in gaming segment growth (flat YoY) and soaring opex due to continued hefty investment in Nuomi, the company's group buying arm, we expect its operating loss to widen significantly in 2013, while the timing of a turnaround is unclear."

"We believe Renren is undergoing a difficult transition period of business migration from online to mobile, while the existing titles on the platform's PC-end hit the roadblocks in adaption to mobile," said Hao.

For an analyst ratings summary and ratings history on Renren Inc (NYSE: RENN) click here. For more ratings news on Renren Inc click here.

Shares of Renren Inc closed at $3.72 yesterday.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Analyst PT Change, Downgrades, Hot Downgrades

Related Entities

Deutsche Bank

Add Your Comment