Oppenheimer Reiterates Outperform Rating, $9.50 PT on Dangdang on Modest 4Q12 Beat
In a report published Friday, Oppenheimer reiterated its Outperform rating and $9.50 price target on Dangdang (NYSE: DANG).
Oppenheimer noted, “DANG reported 4Q12 revenue of $259M and non-GAAP EPADS of ($0.24), roughly in line with consensus estimates. Margins expanded y/y for the second quarter. We expect operating margins to improve y/y through 2013 given operating leverage as its marketplace and self-procurement categories gain scale. Management guided 1Q13 revenue of ~$209M (~21.5% y/y), below consensus estimate of $226M. We're lowering our 2013 revenue and non-GAAP EPADS to reflect moderating growth but higher margin assumptions. While we expect the stock to remain range-bound due to still limited earnings visibility, its valuation remains attractive, trading at ~0.2x 2013E EV/Sales.”
Dangdang closed on Thursday at $3.98.
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