Piper Jaffray Downgrades China Valves Technology, Slashes Price Target (CVVT)

Piper Jaffray downgraded shares of China Valves Technology, Inc.

to Neutral and cut its price target to $8.50 from $15 due to poor corporate governance. In the research note, Piper Jaffray writes, "We are downgrading CVVT shares to Neutral, citing rising investor skepticism regarding the governance quality of US-listed Chinese stocks. CVVT scores poorly in the Piper Jaffray Governance Ranking for Chinese Industrial Companies, which is being published concurrently with this note. In the current environment we believe this in itself is enough to keep CVVT from appreciating in value. Among other things, strengthening the board, hiring a Big-4 auditor, and appointing a more qualified management team would lead us to reconsider our rating." Shares of China Valves Technology gained 5 cents yesterday to close at $8.17, a gain of 0.6%. Learn how to find the best

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