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Brean Murray Initiates Coverage on KongZhong (KONG) with a Buy; Benefit From 3G Rollout in China

July 10, 2009 9:15 AM EDT
KONG Hot Sheet
Rating Summary:
    1 Buy, 0 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Brean Murray initiates coverage on KongZhong (Nasdaq: KONG) with a Buy rating. Price target $12.

Brean analyst says, "We believe KongZhong is one of the key beneficiaries of the current 3G rollout in China. The company aims to create a dominant mobile portal and a community-driven mobile platform that fuels the mobile gaming business. We view the approach as a killer recipe in the mobile Internet space and have already seen it being very successful in Japan. Further, we believe that the company's legacy WVAS business is benefitting from a loosening regulatory environment. Consequently, we believe we will see strong revenue growth amplified by operating leverage for the next couple of years."

To see more analyst ratings on KONG Click Here.

KongZhong Corporation (KongZhong) provides interactive entertainment, media and community services to mobile phone users through second-generation (2G) technology platforms, including short messaging services (SMS), interactive voice response (IVR) and color ring back tone (CRBT).

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