Brean Murray Carret & Co. Starts E-Commerce China Dangdang (DANG) at Hold; Buying Growth at High Prices

Brean Murray Carret & Co. initiates coverage on E-Commerce China Dangdang (NYSE: DANG) with a Hold.

Brean analyst says, "Buying growth at high prices; we rate it Hold only as we acknowledge the strategic value of its online media business. We are positive on the e-commernce growth in China, but view it as an uphill battle for DANG to land in the top-tier e-commerce camp. While we acknowledge the strategic value of DANG's online media segment, we are concerned over the fundamentals - its top-line growth will likely come at the expense of operating losses, as the company is buying its growth at high prices. We see limited upside on the stock for the forseeable future and expect widened losses in coming qtrs upon margin contraction."

For an analyst ratings summary and ratings history on E-Commerce China Dangdang click here. For more ratings news on E-Commerce China Dangdang click here.

Shares of E-Commerce China Dangdang closed at $4.41 yesterday.

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