Brean Murray Carret & Co. Starts Renren Inc (RENN) at Hold; Leading Real ID SNS Facing Critical challenges

Brean Murray Carret & Co. initiates coverage on Renren Inc (NYSE: RENN) with a Hold.

Brean analyst says, "Leading real ID SNS facing critical challenges with cash burn on Nuomi and 56.com further depressing margins. We value RENN as a leading real ID SNS, but see the platform losing traction due to competition for Tencent and SINA Weibo. We are concerned over the continued spending on Nuomi, the group buy business, and 56.com, a recently acquired online video site, and expect margin contraction in the coming quarters. We rate the stock Hold as RENN has a cash balance of ~$1.2 billion, which could provide support for the stock price in the near term."

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 $3.60 yesterday.

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