UPDATE: Goldman Sachs Downgrades SouFun Holdings Limited to Neutral on Valuation
Goldman Sachs downgraded SouFun Holdings Limited (NYSE: SFUN) from Buy to Neutral and raised the price target from $24.00 to $26.00.
Goldman Sachs said, "We downgrade SouFun from Buy to Neutral as the stock looks fairly valued. The stock is up 8.5% since we upgraded to Buy on May 5, 2011, vs. MSCI China down 3.9%. We think SouFun outperformed the index despite the challenges in the Chinese property market due to its resilient profit growth, leveraging continuous product innovations (e-commerce, online shops) and solid execution capabilities of its sales team. While we have turned incrementally positive on the company's structural outlook, we believe near-term earnings upside has been fairly priced in. We would wait for evidence of stronger earnings upside before turning more positive."
SouFun Holdings Limited closed at $27.45 on Friday.
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