Deutsche Bank Downgrades Renren Inc (RENN) to Sell; Ramping Up Investment to Affect Profitability
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Price: $3.01 +5.61%
Rating Summary:
1 Buy, 9 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 20 | Down: 36 | New: 12
Rating Summary:
1 Buy, 9 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 20 | Down: 36 | New: 12
Trade RENN Now!
Deutsche Bank downgraded Renren Inc (NYSE: RENN) to Sell with a price target of $3.49.
Deutsche analyst says, "We believe mgmt is committed heavy investment in 2012 in order to capture various opportunities within China's ever-evolving Internet. We expect the company to focus on: 1) R&D in 3G 2) promotion of new products and 3) further buttressing of Nuomi (Renren's group-buy arm) and 56.com (online video arm). We expect these investments to significantly affect Renren's profitability in the next 4-6 quarters. We view the visibility of return on these investments as weak at the current stage."
"We expect headcount will increase by 40% in 2012. As a result, we increase 2012 net loss forecast to US$33m from US$16m and decrease our 2013 net profit forecast to US$10m from US$35m."
For an analyst ratings summary and ratings history on Renren Inc click here. For more ratings news on Renren Inc click here.
Shares of Renren Inc closed at $5.19 yesterday, with a 52 week range of $3.21-$24.00.
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Deutsche analyst says, "We believe mgmt is committed heavy investment in 2012 in order to capture various opportunities within China's ever-evolving Internet. We expect the company to focus on: 1) R&D in 3G 2) promotion of new products and 3) further buttressing of Nuomi (Renren's group-buy arm) and 56.com (online video arm). We expect these investments to significantly affect Renren's profitability in the next 4-6 quarters. We view the visibility of return on these investments as weak at the current stage."
"We expect headcount will increase by 40% in 2012. As a result, we increase 2012 net loss forecast to US$33m from US$16m and decrease our 2013 net profit forecast to US$10m from US$35m."
For an analyst ratings summary and ratings history on Renren Inc click here. For more ratings news on Renren Inc click here.
Shares of Renren Inc closed at $5.19 yesterday, with a 52 week range of $3.21-$24.00.
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