UPDATE: Barclays Maintains Equal Weight on Renren; Lowers PT from $5.80 to $5.50

Barclays reiterated an Equal Weight rating on Renren

and lowered its price target from $5.80 to $5.50. Barclays commented, “We maintain our Equal Weight rating as we adjust our 12-month price target to US$5.50 based on revisions to our estimates and our DCF valuation analysis. Despite facing multiple challenges on its advertising business, Renren managed to deliver solid 2Q12 results thanks to strong growth momentum from the online gaming business as well as the continued ramping up of the group-buy business. More importantly, management reaffirmed it full-year revenue guidance of 50-55% y/y growth and remained positive on its gaming growth prospects and future monetisation opportunities on mobile platforms.” Renren closed at $4.11 on Tuesday.