UPDATE: Piper Jaffray Reiterates Overweight on Dangdang Following In-Line Earnings

In a report published Thursday, Piper Jaffray reiterated its Overweight rating on Dangdang

and maintained its $10 price target. Piper Jaffray reported that, "Dangdang reported revenue of $259.2m vs. the Street's $258.9m (PJC:$263.1), while EPS of ($0.24) was in line with the Street (PJC:($0.22). Guidance for Mar-13 was 1.3B RMB, which at the moment translates to ~$209m or 8% below the Street. We believe that the guidance was likely driven by a continued shift towards marketplace (3P), which grew 169% y/y in Dec-12 compared with Media and General Merchandise growth of 24% and 30% respectively. General Merchandise growth of 24% in Dec-12 was a meaningful deceleration from 56% in Sep-12 and highlights the continued movement of Dangdang towards marketplace sales." Shares of Dangdang closed at $4.18 on Wednesday.