UPDATE: Oppenheimer Reduces PT to $7 on Jiayuan.com International Following COO Resignation
Oppenheimer reiterates its Outperform rating on Jiayuan.com International (NASDAQ: DATE) but lowers its price target from $7.50 to $7.
Oppenheimer says, "On Monday, DATE announced that COO Qingyuan Fang has resigned for personal reasons. With its founder, Rose Gong and Linguang Wu (co-CEO) taking over Mr. Fang's responsibilities, we don't believe there will be major changes in the company's operations and strategy. On the other hand, recent website traffic data suggests that Jiayuan may experience a more subdued seasonal rebound in user activity. While maintaining our 2Q12 revenue estimate at the lower end of management's guidance, we're lowering our revenue and earnings estimates on more conservative growth and margin assumptions. We are also lowering our price target from $7.50 to $7.00, based on a ~20x 2013E P/E multiple plus ~$3/ADS net cash."
DATE closed at $4.89 on Monday.
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