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Deutsche Bank Cuts AsiaInfo-Linkage (ASIA) to Hold Amid Q4 Results, Guidance

February 14, 2012 12:16 PM EST
ASIA Hot Sheet
Rating Summary:
    3 Buy, 6 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Deutsche Bank downgraded shares of AsiaInfo-Linkage (NASDAQ: ASIA) from Buy to Hold in an intraday research note Tuesday afternoon. The firm's price target was lowered from $18 to $13.20.

The downgrade follows Q4 results and guidance from AsiaInfo on Monday after the closing bell rang. While shares are currently down 2.5 percent to $11.47, the stock was down as much as 8.3 percent to $10.78 earlier.

Deutsche Bank noted "an increase in implementation engineers to carry out newly signed market expansion and overseas projects partly resulted in a 280bp decline in non-GAAP GM in 4Q. Wage inflation, as well as increased investment in R&D to integrate and standardize products, will likely continue to put pressure on margin in the near term."

For an analyst ratings summary and ratings history on AsiaInfo-Linkage click here. For more ratings news on AsiaInfo-Linkage click here.


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