UPDATE: Credit Suisse Cuts PT to $4.23 on Renren on Below-Consensus Guidance
Credit Suisse reiterated its Neutral rating on Renren (NYSE: RENN) and lowered its price target from $4.40 to $4.23.
Credit Suisse noted, "4Q non-GAAP revenue guidance is for US$45–47 mn, below consensus. As such, we increase our net loss forecast for 2012/2013 and cut target price from US$4.40 to US$4.23. Given the high cash value, we maintain a NEUTRAL rating on Renren. … We believe the weakness of online ad is due to slowdown of economic growth, rising competitive environment and continuous shift by users to mobile, which had not yet been monetised. Management expects weakness in the online ad business to continue in 4Q12."
Renren closed at $3.38 on Tuesday.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.