Market Overview

UPDATE: J.P. Morgan Initiates Coverage on Dangdang with Neutral Rating, $4.30 PT

Related DANG
Will Advanced Micro (AMD) Disappoint This Earnings Season? - Analyst Blog
Why E-Commerce China (DANG) could be an Impressive Growth Stock - Tale of the Tape

In a report published Wednesday, J.P. Morgan & Co. initiated coverage on Dangdang (NYSE: DANG) with a Neutral rating and $4.30 price target.

J.P. Morgan noted, “We initiate on Dangdang (DANG US) with Neutral and Dec-13 PT of US$4.3.Dangdang likely to see significant headwinds in transforming itself into a diversified platform, given strong competition. DANG's margins have already been dragged down due to competitors' entry and product mix shift, and we expect losses for DANG until 2015. We expect the stock to trade sideways until there is more clarity on profitability, and signs of winning share from competitors.”

Dangdang closed on Tuesday at $4.00.

Posted-In: J.P. Morgan & Co.Analyst Color Initiation Analyst Ratings


Most Popular

Related Articles (DANG)

Around the Web, We're Loving...

Partner Network

Get Benzinga's News Delivered Free