Goldman Sachs Upgrades SouFun Holdings (SFUN) to Buy

Goldman Sachs upgraded SouFun Holdings (NYSE: SFUN) from Neutral to Buy with a price target of $16.20.

Anlayst Fei Fang said, "We upgrade SouFun to Buy from Neutral after the stock’s 33% share price pullback from its Mar 6 high (vs. NASDAQ -7%) on weak property transaction volume and sector-wide de-rating. Trading at 12X 2015E P/E (vs. sector average 20X), we believe SouFun has transformed from being competitively challenged (especially in e-commerce) into one of the most defensive vertical leaders due to sustained strength in marketing and listing services, both of which benefit from structural offline-to-online tailwinds regardless of property cycles. We forecast a 21% 2014-17 EPS CAGR, for a compelling current PEG of 0.6X."

For an analyst ratings summary and ratings history on SouFun Holdings click here. For more ratings news on SouFun Holdings click here.

Shares of SouFun Holdings closed at $12.72 yesterday.

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