Jefferies Cuts Price Targets on AutoNavi Holdings (AMAP) Due to Increased Spending
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Price: $11.54 +0.17%
Rating Summary:
1 Buy, 3 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Rating Summary:
1 Buy, 3 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
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Jefferies is maintaining its Buy rating on shares of AutoNavi Holdings (NASDAQ: AMAP) and is lowering its price target from $21 to $17 following the release of its Q3 results.
The company reported strong Q3 results with sales growth of 41.2 percent year over year and net income growth of 51.9 percent, topping the firm's expectations. The firm noted the upside was driven by a 239.3 percent growth in Mobile/Internet LBS sales, which accounted for 26 percent of total sales.
There are currently 32 million users using the free mobile map app, and as a result management has raised its outlook for FY11 from 30 million users to 40 million.
An analyst at Jefferies comments, "Q3 operating expenses was higher than revenue growth due to more R&D and marketing expenses to perfect and market their free mobile map app. We hold the view that monetization should start in 2H12 at the latest."
Jefferies is reducing its EPS estimates for FY11 from $0.71 to $0.68, for FY12 from $0.96 to $0.91, and its FY13 estimate from $1.21 to $1.18. Total sales for the FY11 is estimated to $123.3 million, $157.8 million for FY12, and $192.2 million for FY13.
For an analyst ratings summary and ratings history on AutoNavi Holdings click here. For more ratings news on AutoNavi Holdings click here.
Shares of AutoNavi Holdings closed at $11.15 yesterday, with a 52 week range of $11.55-$21.60.
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The company reported strong Q3 results with sales growth of 41.2 percent year over year and net income growth of 51.9 percent, topping the firm's expectations. The firm noted the upside was driven by a 239.3 percent growth in Mobile/Internet LBS sales, which accounted for 26 percent of total sales.
There are currently 32 million users using the free mobile map app, and as a result management has raised its outlook for FY11 from 30 million users to 40 million.
An analyst at Jefferies comments, "Q3 operating expenses was higher than revenue growth due to more R&D and marketing expenses to perfect and market their free mobile map app. We hold the view that monetization should start in 2H12 at the latest."
Jefferies is reducing its EPS estimates for FY11 from $0.71 to $0.68, for FY12 from $0.96 to $0.91, and its FY13 estimate from $1.21 to $1.18. Total sales for the FY11 is estimated to $123.3 million, $157.8 million for FY12, and $192.2 million for FY13.
For an analyst ratings summary and ratings history on AutoNavi Holdings click here. For more ratings news on AutoNavi Holdings click here.
Shares of AutoNavi Holdings closed at $11.15 yesterday, with a 52 week range of $11.55-$21.60.
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