Deutsche Bank Downgrades Renren Inc (RENN) to Sell; Ramping Up Investment to Affect Profitability

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.

---

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

---

You May Also Be Interested In

• JPMorgan Downgrades Monster Beverage (MNST) to Neutral, 'Cost Pressures and Weaker Low-end Consumer'
• Comcast Corp (CMCSA) PT Lowered to $48 at Pivotal Research
• Truist Securities Double Downgrades Monster Beverage (MNST) to Sell