UPDATE: Deutsche Bank Upgrades Renren to Hold on Improved Stability, Life Cycle
Deutsche Bank raised its rating on Renren (NYSE: RENN) from Sell to Hold and increased its price target from $3.13 to $3.24.
Deutsche Bank noted, "In our view, Renren is moving towards the mid stage of its investment cycle, which improves its financial visibility. Solid gaming revenue growth and consistent platform user base gains are early indicators of investment returns. We expect growth in investment spend to slow down over the coming quarters and some investments to gradually generate financial benefits. We forecast the operating loss to narrow to USD44m in 2013, from USD91m in 2012. We believe the stock is fairly valued and upgrade it to Hold on valuation."
Renren closed at $3.43 on Monday.
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